Foreign acquisition and internal organization

• 成果类型: Article
• 署名作者: Bastos, Paulo; Monteiro, Natalia P.; Straume, Odd Rune
• 署名单位: The World Bank; Universidade do Minho; University of Bergen
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.06.003
• 发表日期: 2018
• 页码: 143-163
• 关键词: foreign direct investment; Internal organization; wage inequality; Information technologies

摘要

We study the effect of foreign takeovers on firm organization. Using a comprehensive data set of Portuguese firms and workers spanning two decades, we find that foreign acquisitions lead to: (1) an expansion in the scale of operations; (2) a higher number of hierarchical layers; and (3) higher wage inequality between the top and bottom layers. These results accord with a theory of knowledge-based hierarchies in which foreign takeovers lead to improved productivity, higher demand, or reduced internal communication costs, and thereby induce the acquired firms to reorganize. Evidence from auxiliary survey data reveals that acquired firms are more likely to use information technologies that reduce internal communication costs. (C) 2018 Published by Elsevier B.V.