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来源类型 | Discussion paper |
规范类型 | 论文 |
来源ID | DP12646 |
DP12646 Financial constraints, institutions, and foreign ownership | |
Nicolas Berman; Ron Alquist; Rahul Mukherjee; Linda Tesar | |
发表日期 | 2018-01-24 |
出版年 | 2018 |
语种 | 英语 |
摘要 | This paper examines how external finance dependence, financial development, and institutions influence brownfield foreign direct investment (FDI). We develop a model of cross-border acquisitions in which the foreign acquirer's choice of ownership structure reflects a key trade-off between easing target credit constraints and the costs of operating in an environment of low institutional quality. Using a dataset of cross-border acquisitions in emerging markets, we find evidence supporting the central predictions of the model that: (i) a foreign firm is more likely to fully acquire a target firm in sectors that are more reliant on external finance, or in countries with lower financial development/higher institutional quality; (ii) the level of foreign ownership in partially foreign-owned firms is insensitive to institutional factors and depends weakly on financial factors; (iii) the share of foreign acquisitions in all acquisition activity is also higher in external finance dependent sectors, or financially underdeveloped/high institutional quality countries; and (iv) sectoral external finance dependence accentuates the effect of country-level financial development and institutional quality. The theory and empirical evidence provide insight into the interaction between the financial, institutional and technological determinants of North-South brownfield FDI. |
主题 | International Macroeconomics and Finance ; International Trade and Regional Economics |
关键词 | Foreign ownership Cross-border mergers and acquisitions External finance dependence Foreign direct investment Financial development |
URL | https://cepr.org/publications/dp12646 |
来源智库 | Centre for Economic Policy Research (United Kingdom) |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/541457 |
推荐引用方式 GB/T 7714 | Nicolas Berman,Ron Alquist,Rahul Mukherjee,et al. DP12646 Financial constraints, institutions, and foreign ownership. 2018. |
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