Working Paper: NBER ID: w0641
Authors: Robert E. Lipsey; Birgitta Swedenborg
Abstract: The examination of foreign takeovers is a way of distinguishing between the characteristics of f inns and industries that encourage takeovers and the effects of foreignness or of takeovers per se. Foreigners have tended to take over Swedish firms that are of above average size within each industry. 'Very .few takeovers are of the smallest groups of firms: those with fewer than 20 employees or even those with fewer than 200. However, the firms taken over are not large compared to Swedish companies of 200 employees or more. In fact, they are well below average size within that group. The firms taken over are more skill-oriented or technology-oriented than Swedish-owned firms in the same industries. However, takeovers are not particularly prevalent in industries in which firms in general are large or skill-oriented or technology-oriented. Thus the select ion of firms for takeover is based on f inn characteristics, not industry characteristics. After takeover by foreigners, firms grow somewhat faster than Swedish-owned firms in the same industries. The technological characteristics of the firms, by the crude measurements we have been able to apply so far, do not seem to be affected in any consistent way by takeover.
Keywords: foreign takeovers; Swedish firms; multinational firms; foreign ownership
JEL Codes: F21; F23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Foreign ownership (F23) | Larger firms taken over (G34) |
| Foreign ownership (F23) | Faster growth of firms (L25) |
| Larger firms taken over (G34) | Faster growth of firms (L25) |