Effect of foreign acquisitions on target firm productivity
Juan Sebastian Camacho Romero
Effect of foreign acquisitions on target firm productivity.
Rel. Luigi Benfratello. Politecnico di Torino, Corso di laurea magistrale in Ingegneria Gestionale (Engineering And Management), 2019
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Abstract
One of the global trends of recent years has been the creation of direct channels of information, knowledge and goods between different units located around the world. The entities responsible for establishing such flows have a principal representative, which is called the Multinational Company (MNC); it is a characteristic entity of the current globalization context and market integration. The MNC's motivated by different reasons - they are economic in the case they seek to reduce their costs or performance if they try to improve their production chain - they make investments in other local companies located in countries abroad, a phenomenon that is currently known as Foreign Direct Investment (FDI).
Under the assumption that the objective for which an MNC invests abroad is met, how is it possible to identify the effect on companies that remained in a local state and are now transformed into multinationals due to the investment received from abroad? The main objective of this study is to establish the effect on the target companies in the post-phase of an FDI by a multinational company, through the comparison of economic and productivity index
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