Which Firms Do Foreigners Buy? Evidence from the Republic of Korea

Using data on mergers and acquisitions involving Korean firms, the authors identify which sectors and firms attracted foreign investment after the liberalization of investment of activity at the end of 1997. They find that domestic acquisitions are similar to foreign acquisitions by sector (of both...

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Main Authors:	Freund, Caroline, Djankov, Simeon
Format:	Publications & Research
Language:	en_US
Published:	World Bank, Washington, DC 2015
Subjects:	access to capital assets Banking Systems bankruptcy bidders book value Collective Action comparative advantage Currency Crises debt Development Economics domestic firms domestic investment domestic investors Economic Growth Economic Policy economies of scale emerging markets export share Fair Trade FDI financial crisis financial data financial information Financial Sector Financial Structure firm size foreign capital foreign direct investment foreign firm foreign firms foreign investment foreign investor foreign investors Foreign ownership Global Economy global markets growth potential Growth Rate Growth Theory host country host-country human capital industrial distribution Industrial Economics International Economics international investors international markets International Trade investment activity labor productivity local firms local market Medicine mergers multinational companies Multinational Enterprises national economies portfolio portfolio investment production function productivity productivity growth profitability Programs Safety Nets Standard errors statements Takeover tax incentives technology diffusion technology transfer Telecommunications Trade Effects transaction value transport costs Transport Equipment Value Added world industry World Investment Mergers Foreign investment Value added Foreign direct investments Location factors Transport costs Technological capacity Brand name Marketing Access to capital markets Corporate debt Export capacity Corporate profits
Online Access:	http://hdl.handle.net/10986/21334

id	okr-10986-21334
recordtype	oai_dc
spelling	okr-10986-213342021-04-23T14:04:01Z Which Firms Do Foreigners Buy? Evidence from the Republic of Korea Freund, Caroline Djankov, Simeon access to capital assets Banking Systems bankruptcy bidders book value Collective Action comparative advantage Currency Crises debt Development Economics domestic firms domestic investment domestic investors Economic Growth Economic Policy economies of scale emerging markets export share Fair Trade FDI financial crisis financial data financial information Financial Sector Financial Structure firm size foreign capital foreign direct investment foreign firm foreign firms foreign investment foreign investor foreign investors Foreign ownership Global Economy global markets growth potential Growth Rate Growth Theory host country host-country human capital industrial distribution Industrial Economics International Economics international investors international markets International Trade investment activity labor productivity local firms local market Medicine mergers multinational companies Multinational Enterprises national economies portfolio portfolio investment production function productivity productivity growth profitability Programs Safety Nets Standard errors statements Takeover tax incentives technology diffusion technology transfer Telecommunications Trade Effects transaction value transport costs Transport Equipment Value Added world industry World Investment Mergers Foreign investment Value added Foreign ownership Foreign direct investments Location factors Transport costs Technological capacity Brand name Marketing Access to capital markets Corporate debt Export capacity Corporate profits Using data on mergers and acquisitions involving Korean firms, the authors identify which sectors and firms attracted foreign investment after the liberalization of investment of activity at the end of 1997. They find that domestic acquisitions are similar to foreign acquisitions by sector (of both the target and the acquiring firm), but that international transactions are larger than Korean transactions. This suggests that consolidation is a two-stage process: Firms consolidate first domestically, then internationally. The authors also find that foreign investment is focused on high-value-added sectors, on larger and more profitable firms, on firms with low debt, and on firms that export a large share of output. Their results suggest that growth induces foreign investment. 2015-01-22T21:06:57Z 2015-01-22T21:06:57Z 2000-09 http://hdl.handle.net/10986/21334 en_US Policy Research Working Paper;No. 2450 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Asia East Asia Korea, Republic of
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	access to capital assets Banking Systems bankruptcy bidders book value Collective Action comparative advantage Currency Crises debt Development Economics domestic firms domestic investment domestic investors Economic Growth Economic Policy economies of scale emerging markets export share Fair Trade FDI financial crisis financial data financial information Financial Sector Financial Structure firm size foreign capital foreign direct investment foreign firm foreign firms foreign investment foreign investor foreign investors Foreign ownership Global Economy global markets growth potential Growth Rate Growth Theory host country host-country human capital industrial distribution Industrial Economics International Economics international investors international markets International Trade investment activity labor productivity local firms local market Medicine mergers multinational companies Multinational Enterprises national economies portfolio portfolio investment production function productivity productivity growth profitability Programs Safety Nets Standard errors statements Takeover tax incentives technology diffusion technology transfer Telecommunications Trade Effects transaction value transport costs Transport Equipment Value Added world industry World Investment Mergers Foreign investment Value added Foreign ownership Foreign direct investments Location factors Transport costs Technological capacity Brand name Marketing Access to capital markets Corporate debt Export capacity Corporate profits
spellingShingle	access to capital assets Banking Systems bankruptcy bidders book value Collective Action comparative advantage Currency Crises debt Development Economics domestic firms domestic investment domestic investors Economic Growth Economic Policy economies of scale emerging markets export share Fair Trade FDI financial crisis financial data financial information Financial Sector Financial Structure firm size foreign capital foreign direct investment foreign firm foreign firms foreign investment foreign investor foreign investors Foreign ownership Global Economy global markets growth potential Growth Rate Growth Theory host country host-country human capital industrial distribution Industrial Economics International Economics international investors international markets International Trade investment activity labor productivity local firms local market Medicine mergers multinational companies Multinational Enterprises national economies portfolio portfolio investment production function productivity productivity growth profitability Programs Safety Nets Standard errors statements Takeover tax incentives technology diffusion technology transfer Telecommunications Trade Effects transaction value transport costs Transport Equipment Value Added world industry World Investment Mergers Foreign investment Value added Foreign ownership Foreign direct investments Location factors Transport costs Technological capacity Brand name Marketing Access to capital markets Corporate debt Export capacity Corporate profits Freund, Caroline Djankov, Simeon Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
geographic_facet	East Asia and Pacific Asia East Asia Korea, Republic of
relation	Policy Research Working Paper;No. 2450
description	Using data on mergers and acquisitions involving Korean firms, the authors identify which sectors and firms attracted foreign investment after the liberalization of investment of activity at the end of 1997. They find that domestic acquisitions are similar to foreign acquisitions by sector (of both the target and the acquiring firm), but that international transactions are larger than Korean transactions. This suggests that consolidation is a two-stage process: Firms consolidate first domestically, then internationally. The authors also find that foreign investment is focused on high-value-added sectors, on larger and more profitable firms, on firms with low debt, and on firms that export a large share of output. Their results suggest that growth induces foreign investment.
format	Publications & Research
author	Freund, Caroline Djankov, Simeon
author_facet	Freund, Caroline Djankov, Simeon
author_sort	Freund, Caroline
title	Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
title_short	Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
title_full	Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
title_fullStr	Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
title_full_unstemmed	Which Firms Do Foreigners Buy? Evidence from the Republic of Korea
title_sort	which firms do foreigners buy? evidence from the republic of korea
publisher	World Bank, Washington, DC
publishDate	2015
url	http://hdl.handle.net/10986/21334
_version_	1764447968040058880

Which Firms Do Foreigners Buy? Evidence from the Republic of Korea

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