This report presents the findings of a study on foreign affiliate statistics (FATS), with a particular focus on comparing the characteristics of foreign-owned enterprises in New Zealand with those of domestically-owned firms.
As at 31 March 2012:
Of all firms in New Zealand, 1.4 percent are foreign affiliates. However, these foreign affiliate firms employ 15.4 percent of total employees in New Zealand.
Over a third of all foreign affiliate firms in New Zealand are Australian-owned. These Australian-owned firms employ just under half of all foreign affiliate employees in New Zealand.
One in five of all people employed in Auckland are employed by a foreign affiliate firm.
Foreign affiliates own 44.4 percent of all assets owned by New Zealand firms, mostly due to the foreign ownership of most of New Zealand’s banks.
Foreign affiliates have similar returns on equity to domestically-owned firms: 11.0 percent compared with 11.9 percent.
Foreign affiliates have higher debt levels than domestic firms. At a total level, foreign affiliates have a debt/equity ratio of 4.7, compared with 1.2 for domestic firms.
Foreign affiliates earned $14.7 billion of net profits during the March 2012 year, 58.7 percent of which was paid to their overseas investors as dividends.
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ISBN 978-0-478-42910-7 (online)
Published 16 July 2014