Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249367 
Year of Publication: 
2021
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2021/6
Publisher: 
European Commission, Ispra
Abstract: 
This study empirically investigates the extent to which firms in the European Union, once acquired through a cross-border acquisition, show different productivity levels as compared to those firms that have not been acquired. Our identification strategy relies on the combination of Propensity Score Matching and the Staggered Difference-in-Difference estimator, using firms' balance sheet for the years 2008-2018. We find that cross-border acquisitions decrease the productivity of the acquired firms, especially in the manufacturing and services sectors, as well as in less knowledge intensive activities. Firms targeted by acquirers originating in emerging market economies also decrease productivity of high-tech target firms.
Subjects: 
Cross-border M&As
FDI
TFP
European Union
Propensity Score Matching
DiD
JEL: 
D24
F23
F60
G34
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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