دانلود رایگان مقاله اثر جانبی بین فاکتور بازار و استراتژی بازار سرمایه

ABSTRACT

In this paper we build on the liability of foreignness concept and the institutional perspective to show how an equity listing and subsidiary formations in the host market are interlinked. Using a matched sample of foreign equity-listed and domestic equity-listed European firms on EU-regulated capital markets, we find that (1) the number of prior host-market subsidiary formations increases the probability of a host-market equity listing, and (2) a prior hostmarket equity listing increases the number of host-market subsidiary formations. Hence, we identify spillover effects between factor market and capital market strategies. However, the extent of these spillover effects depends on institutional characteristics of the host market, where companies on smaller markets gain higher spillover effects. We contribute to international management and finance research by providing factor market strategies as a valuable source to overcome capital market liabilities of foreignness and capital market strategies as a valuable source to overcome factor market liabilities of foreignness.

5. Discussion, implications and limitations

That MNEs have to combat LOF when crossing national borders to pursue business is widely acknowledged (Eden and Miller, 2004; Zaheer, 1995). As a consequence, the identification of mechanisms to overcome or limit the FMLOF and CMLOF is important to MNEs and international management and finance research. Based on the idea that factor market and capital market strategies are interlinked (e.g. Pagano et al., 2002; Saudagaran, 1988), we add prior factor market location strategies as a means to overcome or limit the CMLOF, and prior capital market location strategies as a means to overcome or limit the FMLOF. Specifically.