Foreign Takeovers of Swedish Firms

19 Pages Posted: 15 Jun 2001 Last revised: 27 Aug 2001

See all articles by Robert E. Lipsey

Robert E. Lipsey

National Bureau of Economic Research (NBER) at New York (Deceased)

Birgitta Swedenborg

Center for Business and Policy Studies (SNS), Stockholm

Date Written: March 1981

Abstract

The examination of foreign takeovers is a way of distinguishing between the characteristics of f inns and industries that encourage takeovers and the effects of foreignness or of takeovers per se. Foreigners have tended to take over Swedish firms that are of above average size within each industry. 'Very .few takeovers are of the smallest groups of firms: those with fewer than 20 employees or even those with fewer than 200. However, the firms taken over are not large compared to Swedish companies of 200 employees or more. In fact, they are well below average size within that group. The firms taken over are more skill-oriented or technology-oriented than Swedish-owned firms in the same industries. However, takeovers are not particularly prevalent in industries in which firms in general are large or skill-oriented or technology-oriented. Thus the select ion of firms for takeover is based on f inn characteristics, not industry characteristics. After takeover by foreigners, firms grow somewhat faster than Swedish-owned firms in the same industries. The technological characteristics of the firms, by the crude measurements we have been able to apply so far, do not seem to be affected in any consistent way by takeover.

Suggested Citation

Lipsey, Robert E. and Swedenborg, Birgitta, Foreign Takeovers of Swedish Firms (March 1981). NBER Working Paper No. w0641. Available at SSRN: https://ssrn.com/abstract=273575

Robert E. Lipsey (Contact Author)

National Bureau of Economic Research (NBER) at New York (Deceased)

Birgitta Swedenborg

Center for Business and Policy Studies (SNS), Stockholm ( email )

Skoldungagatan 2, Box 5629
S-114 86 Stockholm
Sweden

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