Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147006
Authors: 
Stiebale, Joel
Vencappa, Dev
Year of Publication: 
2016
Series/Report no.: 
DICE Discussion Paper 229
Abstract: 
This paper uses a rich panel data set of Indian manufacturing firms to analyze the effects of domestic and international acquisitions on various outcomes at target firm and product level. We apply recent methodological advances in the estimation of production functions together with information on prices and quantities to estimate physical productivity, markups, marginal costs and proxies for product quality. Using a propensity score reweighting estimator, we find that acquisitions are associated with increases in quantities and markups and lower marginal costs on average. These changes are most pronounced if acquirers are located in technologically advanced countries. We also provide evidence that the quality of products increases while quality-adjusted prices fall upon acquisitions.
Subjects: 
Foreign Direct Investment
Foreign Ownership
Mergers and Acquisitions
Multi-Product Firms
Productivity
JEL: 
F61
F23
G34
L25
D22
D24
ISBN: 
978-3-86304-228-8
Document Type: 
Working Paper

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