Inward FDI | |||||
---|---|---|---|---|---|
Variable | Total | Purely domestic | pre-acq. | acq. | post-acq. |
Return on sales | 0.0997 | 0.1002 | 0.0591 | 0.0604 | 0.0587 |
Return on total assets | 0.0884 | 0.0885 | 0.0818 | 0.0647 | 0.0771 |
Operating profit margin (EBITDA) | 0.2114 | 0.2126 | 0.1442 | 0.1254 | 0.1109 |
Total assets turnover | 2.136 | 2.136 | 2.140 | 2.069 | 2.207 |
Current ratio | 1.744 | 1.745 | 1.669 | 1.603 | 1.789 |
Interest coverage | 27.25 | 27.14 | 30.99 | 33.44 | 42.09 |
Sales | 13,720 | 13,107 | 38,040 | 62,109 | 79,792 |
Total assets | 11,208 | 10,795 | 31,246 | 48,001 | 49,806 |
Fixed assets | 4,104 | 4,048 | 8,650 | 11,850 | 6,207 |
Labor costs | 2,262 | 2,146 | 7,603 | 11,635 | 13,650 |
Material costs | 7,977 | 7,642 | 20,294 | 30,328 | 46,557 |
Labor cost share | 0.2059 | 0.2057 | 0.2281 | 0.2222 | 0.2112 |
Material cost share | 0.3546 | 0.3537 | 0.3899 | 0.4126 | 0.4550 |
Other operating costs share | 0.2832 | 0.2833 | 0.2815 | 0.2778 | 0.2559 |
Tangibility | 0.2619 | 0.2634 | 0.1940 | 0.1411 | 0.1111 |
Leverage | 0.7791 | 0.7794 | 0.7652 | 0.7823 | 0.7381 |
Market share | 0.0031 | 0.0029 | 0.0105 | 0.0133 | 0.0170 |
Loss-making | 0.2460 | 0.2458 | 0.2512 | 0.3163 | 0.2606 |
Age | 11.72 | 11.71 | 11.57 | 10.23 | 13.41 |
Obs. | 629,919 | 621,123 | 4,367 | 1,040 | 3,389 |
ATT | |||
---|---|---|---|
Taxable income/Sales (1) | EBITDA/Sales (2) | Total assets (3) | |
Differences | Benchmark: 3 years average prior to acquisition | ||
The year of acquisition | |||
(−0.474) | (−1.160) | (−0.893) | |
1 year after acquisition | |||
(−1.508) | (−3.387) | (−1.613) | |
2 years after acquisition | |||
(−1.982) | (−3.889) | (−2.019) | |
3 years after acquisition | |||
(−2.003) | (−2.706) | (−1.196) | |
4 years after acquisition | |||
(−3.421) | (−4.683) | (−1.771) | |
(−3.996) | (−5.490) | (−2.636) |
Variable | Matching status | Mean (Treated) | Mean (Controls) | % bias | % reduction in bias | ||
---|---|---|---|---|---|---|---|
Taxable income/Sales | Unmatched | 0.0761 | 0.0857 | −6.7 | −0.79 | 0.428 | |
Matched | 0.0761 | 0.0780 | −1.3 | 80.0 | −0.13 | 0.897 | |
Tangibility | Unmatched | 0.1493 | 0.2862 | −53.4 | −5.80 | 0.000 | |
Matched | 0.1493 | 0.1489 | 0.1 | 99.7 | 0.01 | 0.988 | |
Market share | Unmatched | 0.0225 | 0.0031 | 30.1 | 10.80 | 0.000 | |
Matched | 0.0225 | 0.0129 | 15.0 | 50.4 | 1.22 | 0.223 | |
Ln (Total Assets) | Unmatched | 9.255 | 7.916 | 99.0 | 13..60 | 0.000 | |
Matched | 9.255 | 9.199 | 4.1 | 95.8 | 0.33 | 0.744 | |
Age q1 | Unmatched | 0.1975 | 0.2601 | 5.9 | 0.76 | 0.449 | |
Matched | 0.1975 | 0.2484 | 8.6 | −44.2 | 0.76 | 0.446 | |
Age q2 | Unmatched | 0.2612 | 0.3058 | −9.9 | −1.21 | 0.224 | |
Matched | 0.2612 | 0.2739 | −2.8 | 71.5 | −0.25 | 0.800 | |
Age q3 | Unmatched | 0.2025 | 0.21145 | 0.3 | 0.04 | 0.968 | |
Matched | 0.2229 | 0.18 | −4.7 | −1395 | −0.41 | 0.681 | |
Age q4 | Unmatched | 0.2484 | 0.2315 | 4.0 | 0.50 | 0.616 | |
Matched | 0.2484 | 0.2548 | −1.5 | 62.3 | −0.13 | 0.897 | |
Industry group 1 | Unmatched | 0.1975 | 0.1713 | 6.7 | 0.87 | 0.384 | |
Matched | 0.1975 | 0.1656 | 8.2 | -21.6 | 0.73 | 0.466 | |
Industry group 2 | Unmatched | 0.4013 | 0.1529 | 57.6 | 8.64 | 0.000 | |
Matched | 0.4013 | 0.4268 | −5.9 | 89.7 | −0.46 | 0.648 | |
Industry group 3 | Unmatched | 0.0701 | 0.3259 | −67.7 | −6.84 | 0.000 | |
Matched | 0.0701 | 0.0510 | 5.1 | 92.5 | 0.71 | 0.479 | |
Industry group 4 | Unmatched | 0.0892 | 0.0660 | 8.7 | 1.17 | 0.242 | |
Matched | 0.0892 | 0.1147 | −9.5 | −9.8 | −0.74 | 0.457 | |
Industry group 5 | Unmatched | 0.0892 | 0.1544 | -20.0 | −2.26 | 0.024 | |
Matched | 0.0892 | 0.0764 | 3.9 | 80.5 | 0.41 | 0.683 | |
Industry group 6 | Unmatched | 0.1529 | 0.1295 | 6.7 | 0.87 | 0.384 | |
Matched | 0.1529 | 0.1656 | −3.7 | 45.4 | −0.31 | 0.759 |
ATT | ||||
---|---|---|---|---|
Acq. | Taxable income/Sales (1) | Taxable income/Total assets (2) | EBITDA/Sales (3) | |
Differences | (4 years after acquisition (average) - 3 years prior to acquisition (average)) | |||
I. Original sample | 155 | |||
(−3.996) | (−5.490) | (−2.636) | ||
II. Excluding loss-making firms | 124 | |||
(−3.459) | (−4.000) | (−2.168) | ||
III. Foreign ownership share over 90% | 129 | |||
(−4.976) | (−5.554) | (−3.456) |
ATT | |||
---|---|---|---|
Taxable income/ Sales (1) | Taxable income/ Total assets (2) | EBITDA/Sales (3) | |
Differences | (4 years after acquisition (average) - 3 years prior to acquisition (average)) | ||
Nearest neighbor matching | |||
(−3.996) | (−5.490) | (−2.636) | |
Kernel matching | |||
(−3.65) | (−2.80) | (−2.60) | |
Radius matching | |||
(−2.03) | (−3.28) | (−2.55) |
Number of |
Number of (2) | Probit pseudo R-squared before (3) | Probit pseudo R-squared after (4) | Median bias, before (5) | Median bias, after (6) | |
---|---|---|---|---|---|---|
0 (year of acquisition) | 568 | 389,181 | 0.116 | 0.011 | 16.8 | 2.6 |
1st year post acquisition | 413 | 320,833 | 0.121 | 0.009 | 18.6 | 2.7 |
2nd year post acquisition | 311 | 268,098 | 0.130 | 0.010 | 20.4 | 2.7 |
3rd year post acquisition | 241 | 221,337 | 0.150 | 0.015 | 22.2 | 4.3 |
4th year post acquisition | 169 | 179,851 | 0.162 | 0.029 | 16.6 | 5.6 |
4 years post acquisition (average) | 157 | 167,658 | 0.167 | 0.028 | 18.1 | 3.9 |
ATT | |||
---|---|---|---|
Material costs of Goods sold /Sales (1) | Labor costs/Sales (2) | Other operating costs /Sales (3) | |
Differences | Benchmark: 3 years average prior to acquisition | ||
The year of acquisition | 0.006 | −0.005 | 0.003 |
(0.963) | (−1.112) | (0.446) | |
1 year after acquisition | −0.010 | ||
(4.487) | (−2.685) | (−1.366) | |
2 years after acquisition | −0.005 | 0.000 | |
(2.213) | (−0.877) | (0.014) | |
3 years after acquisition | −0.003 | ||
(2.765) | (−1.901) | (−.330) | |
4 years after acquisition | −0.002 | −0.009 | |
(2.710) | (−0.256) | (−0.966) | |
0.000 | −0.000 | ||
(2.682) | (0.038) | (−0.020) |
Coefficient | Standard Error | ||
---|---|---|---|
Return on sales | −0.4463*** | 0.000 | |
Tangibility | −0.3929*** | 0.000 | |
Market share | 0.5742** | 0.044 | |
Ln(Total Assets) | 0.1765*** | 0.000 | |
Age Q2 | −0.1496*** | 0.000 | |
Age Q3 | −0.1676*** | 0.000 | |
Age Q4 | −0.2554*** | 0.000 | |
Year dummy variables | Yes | ||
Industry dummy variables | Yes | ||
Region dummy variables | Yes | ||
Pseudo R-squared | 0.1160 | ||
LR chi-squared | 992.08 | ||
Observations | 389,749 | ||
Treated | 568 | ||
Non-treated | 389,181 |
ATT | |||||
---|---|---|---|---|---|
Sales (1) | Taxable Income (2) | Total Assets (3) | Fixed Assets (4) | Leverage Ratio (5) | |
Differences | Benchmark: 3 years average prior to acquisition | ||||
The year of acquisition | |||||
(2.527) | (2.464) | (4.822) | (1.007) | ||
1 year after acquisition | |||||
(6.273) | (2.559) | (6.093) | (2.585) | (−.418) | |
2 years after acquisition | 0.031 | ||||
(6.311) | (3.631) | (5.872) | (.422) | (−1.815) | |
3 years after acquisition | |||||
(5.981) | (2.850) | (6.221) | (3.368) | (−3.987) | |
4 years after acquisition | |||||
(5.382) | (2.312) | (6.138) | (4.315) | (1.249) | |
(8.450) | (2.377) | (8.712) | (3.090) | (−3.041) |
Inward FDI | |||||
---|---|---|---|---|---|
Year | Total | Purely domestic | pre-acquisition | acquisition | post-acquisition |
1994 | 40,225 | 39,754 | 392 | 79 | 0 |
1995 | 42,876 | 42,346 | 428 | 30 | 72 |
1996 | 45,722 | 45,163 | 423 | 32 | 104 |
1997 | 48,895 | 48,273 | 468 | 27 | 127 |
1998 | 51.741 | 51,041 | 513 | 34 | 153 |
1999 | 53,185 | 52,435 | 500 | 68 | 182 |
2000 | 54,790 | 53,988 | 484 | 88 | 230 |
2001 | 55,982 | 55,139 | 414 | 124 | 305 |
2002 | 56,292 | 55,423 | 343 | 119 | 407 |
2003 | 58,120 | 57,237 | 268 | 110 | 505 |
2004 | 60,168 | 59,265 | 134 | 172 | 597 |
2005 | 61,923 | 61,059 | 0 | 157 | 707 |
Total | 629,919 | 621,123 | 4,367 | 1,040 | 3,389 |
ATT | |||
---|---|---|---|
Change from year before acquisition to | Total asset turnover (1) | Current ratio (2) | Interest coverage (3) |
Differences | Benchmark: 3 years average prior to acquisition | ||
The year of acquisition | −0.078 | 1.554 | |
(−2.20) | (−1.047) | (0.360) | |
1 year after acquisition | −0.034 | 0.001 | 2.415 |
(−0.719) | (0.016) | (0.438) | |
2 years after acquisition | 0.055 | 0.038 | −2.584 |
(1.003) | (0.344) | (−0.477) | |
3 years after acquisition | 0.029 | 0.165 | 0.290 |
(0.476) | (1.367) | (0.045) | |
4 years after acquisition | 0.042 | 0.099 | −9.364 |
(0.619) | (0.723) | (−1.484) | |
−0.031 | 0.074 | −4.521 | |
(−0.632) | (0.794) | (0.949) |