Employee productivity, employment growth, and the cross-border acquisitions by emerging market firms
We examine the impact of the cross-border acquisitions made by firms from emerging markets on employee productivity and employment growth. The literature suggests that cross-border acquisitions enable emerging market firms to obtain new skills and knowledge-intensive assets, which, in turn, may incr...
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| Main Authors: | , , |
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| Format: | Default Article |
| Published: |
2014
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| Subjects: | |
| Online Access: | https://hdl.handle.net/2134/17097 |
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| Summary: | We examine the impact of the cross-border acquisitions made by firms from emerging markets on employee productivity and employment growth. The literature suggests that cross-border acquisitions enable emerging market firms to obtain new skills and knowledge-intensive assets, which, in turn, may increase productivity. However, our empirical analysis suggests that cross-border acquisitions reduce employee productivity and have a limited impact on employment growth. Moreover, we find that cross-border acquisitions in less-developed countries and in culturally distinct countries reduce productivity. Overall, our findings cast doubt on the idea that cross-border acquisitions enable emerging market firms to improve the productivity of one of their most important resources-namely, their human capital. |
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