Efthyvoulou, G., Bamiatzi, V. and Jabbour, L. (2016) Foreign vs Domestic Acquisitions on Financial Risk Reduction. Working Paper. Sheffield Economic Research Paper Series (SERPS), 201600 (2016003). Department of Economics, University of Sheffield ISSN 1749-8368
Abstract
This paper examines the role of foreign versus domestic ownership in improving the financial health of acquired firms. In particular, it explores the impact of foreign and domestic acquisitions on financial risk reduction of acquired firms in Italy and Spain over the period 2002-2010. To estimate causal relationships, we control for selection bias by applying propensity score matching techniques. Our results indicate that foreign acquisition leads to a significant and steady reduction in financial risk. In contrast, the relationship between domestic acquisition and financial risk appears to be smaller and statistically less robust.
Metadata
Item Type: | Monograph |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | The Sheffield Economic Research Paper Series (SERPS) offers a forum for the research output of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by two internal referees and a departmental editor. However, the contents and opinions expressed remain the responsibility of the author(s). Comments are welcomed and should be addressed to the individual author(s). |
Keywords: | financial risk; capital structure; acquisitions; foreign investment |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 15 Feb 2016 12:59 |
Last Modified: | 15 Feb 2016 12:59 |
Published Version: | http://www.sheffield.ac.uk/economics/research/serp... |
Status: | Published |
Publisher: | Department of Economics, University of Sheffield |
Series Name: | Sheffield Economic Research Paper Series (SERPS) |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:95034 |