دانلود رایگان مقاله کنترل مالکیت از مؤسسات وابسته به خارج

ABSTRACT

This paper applies property rights theory to explain changes in foreign affiliates’ ownership. Post-entry ownership change is driven by both firm-level characteristics and by the differences in the institutional environments in host countries. We distinguish between financial market development and the level of corruption as two different institutional dimensions, such that changes along these dimensions impact upon ownership change in different ways. Furthermore, we argue that changes in ownership are affected by the foreign affiliate’s relatedness with its parent’s sector, as well as by the affiliate’s maturity. We use firm level data across 125 host countries to test our hypotheses.

5. Conclusions

This paper explains a long standing disconnect in the literature concerning macro level institutional voids deterring FDI and locations with significant voids still attracting significant amounts of FDI. To resolve this issue we adopt a perspective, which enables us to analyse both the institutional environment and firm level characteristics as part of the integrated framework. The key question relates to the value of the relative contribution of the partners and to the outside options they possess. We examine the evolution of ownership structure of foreign affiliates in the context of institutional voids, both in terms of the standard measure of institutional quality, and also in terms of equity market development. Firm level factors we consider are relatedness and maturity of the JV. We argue that the ownership control structure adjusts, because changes in both the environment and in partners’ characteristics imply changes in the value of their contribution: the response, in the form of a change in the affiliate’s ownership structure, is conditioned both by the value of the relative contributions of foreign and local partners and by their outside options (De Meza & Lockwood, 1998).