Foreign acquisition and internal organization

Detalhes bibliográficos
Autor(a) principal: Bastos, Paulo
Data de Publicação: 2018
Outros Autores: Monteiro, Natália P., Straume, Odd Rune
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: https://hdl.handle.net/1822/65683
Resumo: 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.
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spelling Foreign acquisition and internal organizationForeign direct investmentInternal organizationWage inequalityInformation technologiesSocial SciencesWe 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.We are grateful to two anonymous referees for detailed comments and suggestions that greatly improved the paper. We also thank participants at several seminars and conferences for useful comments and suggestions, and we thank Ministerio do Trabalho, Solidariedade e Seguranca Social and Institute Nacional de Estatistica for allowing access to data from Quadros de Pessoal and Inquerito Utilizacao de Tecnologias da Informacao e da Comunicação nas Empresas. This work was carried out within the funding with COMPETE reference number POCI-01-0145-FEDER-006683, with the FCT/MEC's (Fundação para a Ciência e a Tecnologia, I.P.) financial support through national funding and by the ERDF through the Operational Programme on Competitiveness and Internationalization COMPETE 2020 under the PT2020 Partnership Agreement. Research for this paper was also supported in part by the World Bank's Multidonor Trust Fund for Trade and Development and through the Strategic Research Program on Economic Development. The views expressed herein are those of the authors only and not those of the World Bank. We remain responsible for any errors.Elsevier Science BVUniversidade do MinhoBastos, PauloMonteiro, Natália P.Straume, Odd Rune2018-09-012018-09-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/65683engBastos, P., Monteiro, N. P., & Straume, O. R. (2018, September). Foreign acquisition and internal organization. Journal of International Economics. Elsevier BV. http://doi.org/10.1016/j.jinteco.2018.06.0030022-199610.1016/j.jinteco.2018.06.003info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-21T12:30:39Zoai:repositorium.sdum.uminho.pt:1822/65683Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T19:25:52.921529Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Foreign acquisition and internal organization
title Foreign acquisition and internal organization
spellingShingle Foreign acquisition and internal organization
Bastos, Paulo
Foreign direct investment
Internal organization
Wage inequality
Information technologies
Social Sciences
title_short Foreign acquisition and internal organization
title_full Foreign acquisition and internal organization
title_fullStr Foreign acquisition and internal organization
title_full_unstemmed Foreign acquisition and internal organization
title_sort Foreign acquisition and internal organization
author Bastos, Paulo
author_facet Bastos, Paulo
Monteiro, Natália P.
Straume, Odd Rune
author_role author
author2 Monteiro, Natália P.
Straume, Odd Rune
author2_role author
author
dc.contributor.none.fl_str_mv Universidade do Minho
dc.contributor.author.fl_str_mv Bastos, Paulo
Monteiro, Natália P.
Straume, Odd Rune
dc.subject.por.fl_str_mv Foreign direct investment
Internal organization
Wage inequality
Information technologies
Social Sciences
topic Foreign direct investment
Internal organization
Wage inequality
Information technologies
Social Sciences
description 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.
publishDate 2018
dc.date.none.fl_str_mv 2018-09-01
2018-09-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/1822/65683
url https://hdl.handle.net/1822/65683
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Bastos, P., Monteiro, N. P., & Straume, O. R. (2018, September). Foreign acquisition and internal organization. Journal of International Economics. Elsevier BV. http://doi.org/10.1016/j.jinteco.2018.06.003
0022-1996
10.1016/j.jinteco.2018.06.003
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier Science BV
publisher.none.fl_str_mv Elsevier Science BV
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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