Foreign Direct Investment: Ownership Advantages, Firm Specific Factors, Survival And Performance
Foreign Direct Investment: Ownership Advantages, Firm Specific Factors, Survival And Performance

Author: Mehdi Rasouli Ghahroudi

Publisher: World Scientific

Published: 2018-08-31

Total Pages: 180

ISBN-13: 9813238461

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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.

Determinants of Foreign Ownership in Newly Privatized Companies in Transition Economies
Determinants of Foreign Ownership in Newly Privatized Companies in Transition Economies

Author: Christopher W. Anderson

Publisher:

Published: 2001

Total Pages: 0

ISBN-13:

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We investigate determinants of foreign ownership in newly privatized firms. We analyze data on privatized Czech firms to address two related general questions. First, what characteristics distinguish transition firms that attract a foreign investor? Second, how do firm-specific characteristics influence the size of the foreign equity stake? Our results suggest that foreign investors i) seek safe, profitable firms in which they can exert unchallenged influence on corporate governance and then ii) structure their equity stakes to mitigate agency costs and political risk.

Why is There a Home Bias?
Why is There a Home Bias?

Author: Jun-Koo Kang

Publisher:

Published: 1995

Total Pages: 56

ISBN-13:

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This paper uses data on foreign stock ownership in Japan from 1975 to 1991 to examine the determinants of the home bias in portfolio holdings. Existing models of international portfolio choice predicting that foreign investors hold national market portfolios or portfolios tilted towards high expected return stocks are inconsistent with the evidence provided in this paper. We document that foreign investors overweight shares of firms in manufacturing industries, large firms, firms with good accounting performance, firms with low unsystematic risk, and firms with low leverage. Controlling for size, there is evidence that small firms that export more have greater foreign ownership. Foreign investors do not perform significantly worse than if they held the Japanese market portfolio, however. After controlling for firm size, there is no evidence that foreign ownership is related to expected returns of shares. We show that a model with size-based informational asymmetries and deadweight costs can yield asset allocations consistent with our evidence.

A Study of Foreign Direct Investment Stock in the U.S.economy
A Study of Foreign Direct Investment Stock in the U.S.economy

Author: Lucyna Kornecki

Publisher: LAP Lambert Academic Publishing

Published: 2012-02

Total Pages: 68

ISBN-13: 9783848414727

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Foreign direct investment (FDI) plays an extraordinary and growing role in the global economy and represents an integral part of the U.S. economy. During the past three decades, foreign direct investment has become one of the leading factors promoting the process of globalization. In the early 1970s the United States became a significant recipient of FDI. The U.S. became a host for foreign affiliates as well as a home for multi-national firms. The flow of foreign capital during the 1980's and the second part of 1990's has been a key factor contributing to sustained economic growth. The inward US FDI stock constitutes an important factor contributing to the output growth and employment in the U.S. economy. The related FDI literature provided empirically tested evidence on a significant impact of inward FDI stock on output growth and employment in the U.S. economy.

Foreign Direct Investment in Australia
Foreign Direct Investment in Australia

Author: Isabel Faeth

Publisher: UoM Custom Book Centre

Published: 2010

Total Pages: 389

ISBN-13: 0980770149

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"Submitted in partial fulfilment of the requirements of the degree of Doctor of Philosophy (with coursework component) December 2005."