Finance-specific factors as drivers of cross-border investment - An empirical investigation

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Abstract

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.

Detaljer

Författare
Forskningsområden

Ämnesklassifikation (UKÄ) – OBLIGATORISK

  • Ekonomi och näringsliv

Nyckelord

Originalspråkengelska
Sidor (från-till)630-641
TidskriftInternational Business Review
Volym17
Utgivningsnummer6
StatusPublished - 2008
PublikationskategoriForskning
Peer review utfördJa