Foreign ownership and corporate performance: the Czech Republic at EU entry

0386328 - NHU-C 2013 RIV CZ eng J - Journal Article
Jurajda, Štěpán - Stančík, J.
Foreign ownership and corporate performance: the Czech Republic at EU entry.
Finance a úvěr-Czech Journal of Economics and Finance. Roč. 62, č. 4 (2012), s. 306-324. ISSN 0015-1920. E-ISSN 0015-1920
R&D Projects: GA ČR GA402/06/1293
Institutional support: PRVOUK-P23
Keywords : productivity * foreign ownership * foreign direct investment
Subject RIV: AH - Economics
Impact factor: 0.340, year: 2012
http://journal.fsv.cuni.cz/storage/1251_306-324---jurajda.pdf

Does foreign ownership improve corporate performance, or do foreign firms merely select more productive targets for takeover? Do workers benefit from foreign acquisitions? We answer these questions by comparing the before/after change in several performance indicators of Czech firms subject to foreign takeover after 1997, i.e., after the initial waves of privatization were completed, with the corresponding performance change of matched companies that remained domestically owned until 2005. We find that the impact of foreign investors on domestic acquisitions is significantly positive only in non-exporting manufacturing industries or those with low import penetration, while it is small in both services and manufacturing industries competing on international markets.
Permanent Link: http://hdl.handle.net/11104/0215612