Foreign acquisition and internal organization
Autor(a) principal: | |
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Data de Publicação: | 2018 |
Outros Autores: | , |
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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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 |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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