Finance-specific factors as drivers of cross-border investment - An empirical investigation
Författare
Summary, in English
In this paper we empirically test the role of firm-specific financial characteristics as drivers of international investment and production. We hypothesize that financial strength generates advantages that can be exploited through cross-border investment activity. The hypothesis is tested in a series of binary-response models, using a sample of 1379 European non-financial firms' international acquisitions. Controlling for traditional firm- and target-country-specific foreign direct investment (FDI) determinants, we find strong evidence that financial factors play a significant role in explaining cross-border investment. We conclude that without explicit consideration of the financial dimension, firms' FDI decisions cannot be properly understood. (C) 2008 Elsevier Ltd. All rights reserved.
Avdelning/ar
Publiceringsår
2008
Språk
Engelska
Sidor
630-641
Publikation/Tidskrift/Serie
International Business Review
Volym
17
Issue
6
Dokumenttyp
Artikel i tidskrift
Förlag
Elsevier
Ämne
- Economics and Business
Nyckelord
- OLI
- Cost of capital
- Financial variables
- Cross-border acquisitions
- FDI
- Financial strategy
- LISTINGS
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 1873-6149