The participation of foreign ownership in the Romanian companies has grown rapidly during the past few years. A significant number of Romanian companies were founded or purchased by foreign investors or merged with foreign companies. These modifications that appeared in the structure of the ownership of the Romanian companies could be more profound than in any other country. The reasons are obvious: access to resources, opportunities of the Romanian market, adjusting the products to the preferences and needs of the Romanian customers, lower production costs. However, the dramatic change of the ownership structure of the Romanian companies generated vivid debates among the businessmen, researchers, politicians and the large general public. The main objective of this book is to investigate the relation between the foreign ownership and the performance of Romanian manufacturing firm. The book contains a study which was conducted for a sample 261 of companies listed on Bucharest Stock Exchange.
The purpose of the book is to extend and develop the literature on foreign direct investment (FDI) and multinational corporation (MNCs) subsidiaries. There are several reasons for studying foreign investment and ownership. First, firms need to identify which host country industry factors are important in choosing among the various type of equity ownership (e.g. international joint ventures or wholly-owned subsidiary). Second, international diversification through foreign market entry can provide growth and profitability at rates unavailable in home markets. A third reason this warrants some attention is that type of ownership can affect attempts to counter international competition by engaging foreign rivals on their home turf. Fourth, firms have the option of choosing the appropriate equity ownership for international markets based on balancing their resources, capabilities, and international experience with their desire for ownership and control. This book extends the literature in FDI by providing empirical support for several theories and previously defined and/or tested constructs. For example, the parent and subsidiary's factors measured in this study suggest the importance of internalization and ownership advantages of Dunning's eclectic theory.
In this book the authors provide a new treatment of international taxation, one that focuses on the interactions between fiscal policies of sovereign nations and the magnitude and directions of international capital and goods flow in an integrated world economy.