This study analyses foreign-owned companies operating in Finland.
Between 2001 and 2003 760 foreign companies either established a new site or
acquired an existing unit in Finland. The goal of this paper is to study the develop-
ment of these units. The results of statistical analyses are two-fold. First, estab-
lished foreign-owned units (greenfields) have increased their employment annually
on average 13-15 percent more than domestic-owned units established in the same
period. Furthermore in terms of net sales, foreign-owned units grew, on average,
10-12 percent more rapidly than domestic units. Second, the impact of foreign
ownership differs between greenfield investment and acquisitions. The results sug-
gest that the impact of ownership change on employment and on net sales is simi-
lar in domestic-to-foreign deals as in other deals.