Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Empirical Industrial Organization III E12-V2
We use a rich firm-product panel data set to analyze the effects of domestic and foreign acquisitions on Indian manufacturing firms. Our results indicate that, on average, acquisitions are associated with increases in quantities and markups and lower marginal costs in target firms. We also provide evidence that the quality of products increases while quality-adjusted prices fall upon acquisitions. The effects are most pronounced if acquirers are located in technologically advanced countries.