M&As and Their Economic Effects on Target Companies

Jyrki Ali-Yrkkö, Juri Mattila, Mika Pajarinen and Ilkka Ylhäinen

No 125, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: Abstract This study examines mergers and acquisitions and their economic impact on companies. The study examined which companies in Finland become the targets of acquisitions, how the economic activities of the target companies develop after the change of ownership and whether there is a difference between domestic and foreign acquisitions in these respects. The study was conducted using firm-level data that included nearly 2,000 acquisitions, supplemented by a qualitative review of 19 research interviews. The results of the study show that companies’ innovation activities have a positive relation to the likelihood of being acquired, especially by foreign buyers. However, foreign acquisitions did not have a significant impact on the development of the value added, productivity, profitability or employment of target companies when compared with the control group.

Keywords: Mergers and acquisitions; M&A; Impact; Foreign ownership; Foreign company; Productivity (search for similar items in EconPapers)
JEL-codes: D22 F23 G34 O30 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2022-03-23
New Economics Papers: this item is included in nep-cfn, nep-com, nep-cwa, nep-eff, nep-int, nep-reg and nep-sbm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-125.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rif:report:125

Ordering information: This working paper can be ordered from
https://www.etla.fi/ ... set-kohdeyrityksiin/

Access Statistics for this paper

More papers in ETLA Reports from The Research Institute of the Finnish Economy Contact information at EDIRC.
Bibliographic data for series maintained by Kaija Hyvönen-Rajecki ().