This study provides empirical evidence on characteristics of foreign and domestic acquisitions of Ｕ.Ｓ. manufacturing companies. Specifically, the study examined and compared the five-year premerger profile of 37 and 343 Ｕ.Ｓ. manufacturing companies, that were acguired in the 1980s by foreign and domestic companies, respectively. The profile was analyzed in terms of various company attributes. The ＡＮＯＶＡ results indicate that foreign acquirees did not change as significantly as did domestic acquirees in the five years before merger. Also, differences between the two groups of acquirees were tested. The t-test results show that foreign acquirees were less profitable, more liquid in terms of cash flows but significantly less liquid in terms of working capital, significantly more leveraged, less efficient in assets turnover, paying significant more dividend, significantly less growing, much smaller, and more actively traded than domestic acquirees.

• Robert K . Su
• Jong Kim