() and Holger Görg
Roger Bandick: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, University of Aarhus, Frichshuset, Hermodsvej 22, 8230 Åbyhøj, Denmark
Holger Görg: Kiel Institute for the World Economy, Postal: University of Kiel, Germany
Abstract: This paper analyses the effect of foreign acquisition on survival probability and employment growth of target plant using data on Swedish manufacturing plants during the period 1993- 2002. An improvement over previous studies is that we take into account firm level heterogeneity by separating the targeted plants into those within Swedish MNEs, Swedish exporting non-MNEs, and purely domestic firms before foreign takeover. The results, controlling for possible endogeneity of the acquisition dummy using an IV and propensity score matching approach suggest that acquisition by foreign owners increases the lifetime of the acquired plants only if the plant was an exporter. The effect differs depending on whether the acquisition is horizontal or vertical. We also find robust positive employment growth effects only for exporters, and only if the takeover is vertical, not horizontal
51 pages, September 29, 2009
Full text files
Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2018-01-23 23:30:48.