Hyeog Ug Kwon
NBER Working Papers and Publications
|July 2008||Cross-Border Acquisitions and Target Firms' Performance: Evidence from Japanese Firm-Level Data|
with Kyoji Fukao, Keiko Ito, Miho Takizawa
in International Financial Issues in the Pacific Rim: Global Imbalances, Financial Liberalization, and Exchange Rate Policy (NBER-EASE Volume 17), Takatoshi Ito and Andrew K. Rose, editors
|August 2006||Cross-Border Acquisitions and Target Firms' Performance: Evidence From Japanese Firm-Level Data|
with Kyoji Fukao, Keiko Ito, Miho Takizawa: w12422
Using Japanese firm-level data for the period from 1994-2002, this paper examines whether a firm is chosen as an acquisition target based on its productivity level, profitability and other characteristics and whether the performance of Japanese firms that were acquired by foreign firms improves after the acquisition. In our previous study for the Japanese manufacturing sector, we found that M&As by foreigners brought a larger and quicker improvement in total factor productivity (TFP) and profit rates than M&As by domestic firms. However, it may argued that firms acquired by foreign firms showed better performance simply because foreign investors acquired more promising Japanese firms than Japanese investors did. In order to address this potential problem of selection bias problem, in this ...