__smbhome.uscs.susx.ac.uk_tjk30_Documents_untitled.pdf (778.86 kB)
Foreign vs domestic ownership on debt reduction: an investigation of acquisition targets in Italy and Spain
Version 2 2023-06-07, 08:43
Version 1 2023-06-07, 06:49
journal contribution
posted on 2023-06-07, 08:43 authored by Vasiliki BamiatziVasiliki Bamiatzi, Georgios Efthyvoulou, Liza JabbourThis paper examines the role of foreign versus domestic ownership in reducing the debt levels of acquired firms in Italy and Spain over the period 2002–2010. Acknowledging that lower debt levels can mitigate the risk of failure and thus enhance the chances for a positive post-acquisition performance and survival, we particularly examine the causal effect of foreign and domestic acquisitions on two firm-level debt measures: gearing and short-term leverage. To estimate causal relationships, we control for selection bias by applying propensity score matching techniques. Our results indicate that foreign acquisition leads to a significant and steady reduction in the debt ratios of the target companies. In contrast, the relationship between domestic acquisition and debt reduction appears to be smaller and statistically less robust.
History
Publication status
- Published
File Version
- Published version
Journal
International Business ReviewISSN
0969-5931Publisher
ElsevierExternal DOI
Issue
5Volume
26Page range
801-815Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2019-10-24First Open Access (FOA) Date
2019-10-25First Compliant Deposit (FCD) Date
2019-10-25Usage metrics
Categories
No categories selectedLicence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC