The Performance of UK Takeovers: Does the Nationality of Acquirers Matter?

Authors: Hanley, Aoife; Zervos, Vasilios

Source: International Journal of the Economics of Business, Volume 14, Number 2, July 2007 , pp. 283-297(15)

Publisher: Routledge, part of the Taylor & Francis Group

Buy & download fulltext article:

Price: $50.43 plus tax (Refund Policy)

Abstract:

Using data for 755 acquisitions of manufacturing firms in the UK over a seven year period from 1990 to 1996, we find that the direct effect of an acquisition induces a labour productivity dip in the immediate aftermath of a takeover. This dip is seen for UK, US and the rest of the world acquisitions and is of the magnitude of between 6 and 9%. Similar to Harris and Robinson (2002) we conclude that the decline in productivity is consistent with the adjustment costs of acquisition.

Keywords: Acquisitions; Labour Productivity; Adjustment Costs; Multinationals

Document Type: Research article

DOI: http://dx.doi.org/10.1080/13571510701344095

Publication date: 2007-07-01

More about this publication?