1,721,034 research outputs found
FDI Location Decision: Evidence from Italian firms in Central and Eastern Europe
No full textThe question of why multinational companies (MNCs) choose to locate in one region rather than another has been an important topic in IB research for many years, but has recently received even more attention. Such increased attention is well-merited as firms’ location decisions may well influence their modes of entry, their choice of foreign partner in joint ventures, and the subsequent performance of their foreign affiliates. This paper presents the results of an econometric investigation of the locational determinants of Italian firms in Eastern Europe. Italian firms have been very active investors in the CEE countries, and their investments have had substantial impacts upon the domestic economies. Our results broadly confirm the findings of previous studies, in that we find that local market size and market growth, labour availability, the quality of infrastructure and agglomeration economies are all important determinants. But the Eastern European setting has also enabled us to break new theoretical ground in testing for the effects of market and trade liberalisation. We find that both trade liberalisation and market liberalisation are important influences upon the location decision. If, and it is a question of ‘if’ because there are disadvantages as well as advantages from increased inward investment flows, the CEEC governments wish to attract further (Italian) foreign investment, then further liberalisation of the domestic economies should be a policy priority
The export performance of emerging economy firms: The influence of firm capabilities and institutional environments
No full textWe advance a two-stage theoretical model which contends that the export performance of emerging economy firms (EEFs) will depend both upon their firm-specific capabilities and their home institutional environments. Specifically, we argue that EEFs will be more likely to export when facing more uncertainty at home from greater political instability, substantial informal competition, and high corruption. Furthermore, we hypothesize that firms’ export intensities will be contingent upon specialized internal capabilities such as a skilled workforce, top managerial experience, and access to external technologies. We test these hypotheses using a dataset of more than 16,000 firms from the four BRIC economies (i.e., Brazil, Russia, China and India). Our results confirm that political instability and informal competition have robust effects on the export propensity of EEFs, whilst export intensity is contingent upon the availability of skilled workers and access to external technologies via licensing
Size and liquidity effects in Australasian and South East Asian equity markets
No full textThe emerging equity markets of Asia-Pacific region and the developed Australian and New Zealand equity markets play a significant role in attracting foreign direct investment (FDI) and portfolio investment as well as facilitating local economic development and enforcing high standards of governance. The markets within the region are extremely diverse in nature ranging from those that are heavily influenced and controlled by the state to those that have strong corporate governance regimes enforced by stringent well designed regulation. This paper estimates the costs of equity across major industry sectors in the equity markets of Australia, New Zealand, Indonesia, Malaysia, Singapore, Thailand, Hong Kong and China’s Shenzen and Shanghai. The Fama and French (1993) three-factor model Capital Asset Pricing Model is augmented to take account of stock size and illiquidity factors that are prominent in emerging markets. Results show that premia associated with liquidity are important for the majority of Asia-Pacific markets although in striking contrast size premia are overwhelmingly important in the two Chinese exchanges of Shenzen and Shanghai reflecting the unique level of state control exerted over these markets. Costs of equity are found to be lowest in Australia and New Zealand and considerably higher in Indonesia and Thailand where regulation concerning information disclosure and corporate governance are weaker. However the costs of equity associated across all industries for the two Chinese exchanges of Shenzen and Shanghai are the highest owing primarily to a considerable size premium driving returns and arising from state restrictions placed on listed firms and investors alike. This would provide evidence that burdensome state control exerted on markets leads to a burden of costs falling on firms seeking a listing and rendering these markets less competitive than regional neighbours
Economic Liberalisation and the FDI Location Decision: Evidence from Italian Firms in Eastern Europe
No full textCorporate governance and the composition of foreign equity investment inflows
No full textNo description supplie
The effects of corporate governance on shareholder value creation during the internationalization of emerging market firms
No full textIntangible assets and firm performance: The relative effects of recognized and unrecognized assets
No full textThe term intangible assets embraces a wide array of assets, resources and capabilities that contribute to the
productive potential of firms, but which do not have physical substance. Most empirical studies simply use an
aggregate measure of intangibles derived from data collated from firms’ financial statements (we refer here to
recognized or written intangibles). But such a measure includes only some of the valuable intangibles that firms
possess, and typically does not capture the value of many intangibles (e.g. managerial and organizational capabilities,
market knowledge, trusted relationships) that are internally generated by the company. Yet it is likely
that such unrecognized or non-written intangibles will have at least as important an impact on corporate performance
as that of the written intangibles. We show empirically that the growth of both categories of intangible
assets have significant effects on sales growth (our chosen measure of firm performance), and that the elasticity
of firm performance with respect to the growth of written intangibles is significantly larger than the elasticity
with respect to the growth of non-written intangibles. However, our analysis also reveals that the mean stock of
non-written intangibles is three times larger than the stock of written intangibles, and that the mean growth of
the non-written intangibles is three times faster than that of written intangibles
Knowledge assets and firm international performance
No full textThis paper investigates how intangible knowledge assets impact upon firm international performance through the analysis of a sample of 290 European listed companies. We draw upon the knowledge-based view of the firm, and argue that more knowledge assets have a positive impact on foreign sales intensity, but only a up to a point. The inverse quadratic relationship found suggests that it is necessary to balance knowledge assets with complementary assets in order to achieve a higher degree of international performance. Furthermore we also suggest that externally-generated knowledge assets may have a positive impact upon international performance, but that the impact will be mediated by the possession of internally generated knowledge assets
Trade and Market Liberalisation in Eastern Europe: The Effects on the FDI Location Decisions of Italian Firms
No full textThe question of why multinational companies (MNCs) choose to locate in one region rather than another has been an important topic in IB research for many years, but has recently received even more attention. Such increased attention is well-merited as firms’ location decisions may well influence their modes of entry, their choice of foreign partner in joint ventures, and the subsequent performance of their foreign affiliates. This paper presents the results of an econometric investigation of the locational determinants of Italian firms in Eastern Europe. Italian firms have been very active investors in the CEE countries, and their investments have had substantial impacts upon the domestic economies. Our results broadly confirm the findings of previous studies, in that we find that local market size and market growth, labour availability, the quality of infrastructure and agglomeration economies are all important determinants. But the Eastern European setting has also enabled us to break new theoretical ground in testing for the effects of market and trade liberalisation. We find that both trade liberalisation and market liberalisation are important influences upon the location decision. If, and it is a question of ‘if’ because there are disadvantages as well as advantages from increased inward investment flows, the CEEC governments wish to attract further (Italian) foreign investment, then further liberalisation of the domestic economies should be a policy priority
Overcoming financing constraints to corporate expansion: Evidence from a company in an emerging Islamic market
No full textThe sourcing of low-cost finance to facilitate corporate expansion on competitive terms is a major challenge to firms from emerging markets. There are additional constraints in Islamic markets as financial instruments must adhere to sharia law. This paper examines the approach taken by the Sudan Telecommunications Company (Sudatel) to obtain cost effective equity financing using secondary listings on multiple Middle East and North Africa (MENA) stock exchanges. We compare the costs of equity for Sudatel stock on the Sudan and Abu Dhabi Exchanges, and compare these figures with those for Sudatel's two main regional competitors. Furthermore, we highlight the risk-return trade-off faced by investors in Sudatel stock on both Exchanges, and provide evidence of the potential benefits to investors from the overseas listing.</p
- …
