@techreport{Arndt2010Cross,
abstract = {FDI is an important channel for productivity spillovers across economies. But productivity and employment effects of cross-border mergers and acquisitions (M&A) on multinational firms are rather unclear and much disputed. We empirically analyze the effects of cross-border M&A on the performance of multinationals in Germany using new data on the firm-level. In order to control for possible selection biases we use a propensity score matching approach. We find that, first, foreign-owned multinationals are smaller but more productive than their domestic counterparts in the mean. But controlling for differences in the industrial composition and firm size, foreign-owned multinationals are larger in terms of capital, sales, and value added. The difference of total factor productivity amounts to 6 %. Second, multinationals show quite heterogeneous performances after cross-border M&A. Third, we do not find an average causal effect of cross-border M&A on the employment of the acquired multinational firm. But most importantly, the causal effect of cross-border M&A on the multinationals' productivity is positive and significant.},
address = {T\"{u}bingen},
author = {Christian Arndt and Anselm Mattes},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F21; F23; 330; FDI; Spillover; foreign ownership; cross-border M&A; productivity; employment effects; Multinationales Unternehmen; \"{U}bernahme; Fusion; Direktinvestition; Produktivit\"{a}t; Spillover-Effekt; Besch\"{a}ftigungseffekt; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {62},
publisher = {IAW},
title = {Cross-border mergers and acquisitions of multinational firms: New firm-level evidence},
type = {IAW-Diskussionspapiere},
url = {http://hdl.handle.net/10419/56780},
year = {2010}
}
