When do foreign subsidiaries outperform local firms?

• 成果类型: Article
• 署名作者: Chang, Sea-Jin; Chung, Jaiho; Moon, Jon Jungbien
• 署名单位: National University of Singapore; Korea Advanced Institute of Science & Technology (KAIST); Korea University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2013.35
• 发表日期: 2013
• 页码: 853-860
• 关键词: subsidiary performance; Cross-border mergers and acquisitions (M&As); absorptive capacity; endogeneity; Propensity score matching; difference-in-differences

摘要

This study explores when foreign subsidiaries outperform comparable local firms by evaluating the performance of local firms acquired by multinationals vs continuing local firms. This comparison allows us to single out foreign ownership effects. We employ the propensity score matching method and difference-indifferences approach in order to control for the endogeneity problem inherent in multinational firms' acquisition decisions. We find strong evidence that foreign-acquired local firms outperform comparable local firms in China, especially when the foreign firm acquires local target firms with higher absorptive capacity or with modernized ownership structure.