Foreign and Domestic Takeovers in Germany: First Comparative Evidence on the Post-acquisition Target Performance using new Data

Abstract

This study provides the rst comparative evidence of foreign and domestic acquisitions in Germany. A propensity score matching approach combined with a dierence-in-dier ence estimator were performed separately for foreign and domestic acquisitions to account for a general takeover eect. The study is based on new high-quality panel data for manufacturing enterprises, provided by German ocial statistics. The results indicate a negative impact of foreign takeovers on employment and no productivity improvements for the period 2007 to 2009. This evidence contradicts existing empirical studies for Germany which nd signicant productivity improvements and no changes in terms of employment. These ndings are of particular interest to Germany as one of the most important FDI inow destinations worldwide. They contribute to the foreign ownership performance premium literature as well as improving the understanding of foreign acquisition consequences, a subject of utmost topicality.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 22 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.