FDI in Bulgaria

ABSTRACT

This article examines aspects of foreign direct investment (FDI) in Bulgaria. The article considers propositions relating to the location and own-company motives for engaging in FDI in Bulgaria, the performance of the foreign ventures, and challenges in the management of the ventures. The article also reviews the lessons for potential investors in Bulgaria. The article is based on the analysis of in-depth interviews with senior expatriate managers of nine foreign ventures in Bulgaria. This analysis serves to better understand the nature of FDI in Bulgaria and highlights the issues facing potential investors. Relatively few studies have been conducted on FDI in Bulgaria which is one of the least researched transition economies. This article therefore sheds new light on some important issues concerning FDI in Bulgaria and serves as a case study of a transition economy that is little reported on and little known in the West.     

Motives and Modes of FDI,Firm Characteristics and Performance

Abstract

In this exploratory study, die autfiors attempt to determine and interpret die interdependencies between die motives and modes of setting up subsidiaries by foreign investors in Poland, and the main characteristics and performance of these subsidiaries. Two modes of setting up a subsidiary are examined: green-field and acquisition. The audiors use data collected from seven foreign subsidiaries operating in Poland and apply within-case and cross-case analytical approach to identify and interpret relationships between die variables under consideration. The results of the study lead to a formulation of eight hypotheses requiring further testing and research.     

Are ‘New’ Donors Different? Comparing the Allocation of Bilateral Aid Between nonDAC and DAC Donor Countries

Major DAC donors are widely criticized for weak targeting of aid, selfish aid motives, and insufficient coordination. The emergence of an increasing number of new donors may further complicate the coordination of international aid efforts. At the same time, it is open to question whether new donors (many of which were aid recipients until recently) are more altruistic and provide better targeted aid according to need and merit. Project-level data on aid by new donors, as collected by the AidData initiative, allow for empirical analyses comparing the allocation behavior of new versus old donors. We employ Probit and Tobit models and test for significant differences in the distribution of aid by new and old donors across recipient countries. We find that, on average, new donors care less for recipient need than old donors. New and old donors behave similarly in several respects, however. They disregard merit by not taking the level of corruption in recipient countries into account. Concerns that commercial self-interest distorts the allocation of aid seem to be overblown for both groups.     

Acquisitions: Private versus Public

Takeovers of privately held companies represent more than 80% of all takeovers. Despite their significance, studies of such takeovers and their impact on the wealth of shareholders are rare. Using a very large, near exhaustive, sample of listed and privately held UK targets we examine the impact of such takeovers on the risk adjusted return of listed UK acquirers over the period 1981 to 2001. Acquirers earn significant positive returns during the period surrounding the bid announcement although the gains are dependent on target status, mode of payment, and the relative size of those involved. The much quoted conclusion, derived from the experiences of listed firm bidders that the shareholders of acquiring firms fail to gain from takeovers, cannot be generalised. Acquiring a privately held company is an attractive option for maximising shareholder wealth.     

土地出让市场的博弈分析:利益背景与政府行为过程

研究目的:建立土地出让市场监管博弈模型,分析监管部门和出让部门的混合策略选择,提出完善土地出让市场监管的有效制度安排。研究方法:博弈分析。研究结果:(1)出让部门违规的动因来源于其行为所产生的远超出正常行为的得益以及违规行为被查处后所受的损失与其违规收益的机会成本考量;(2)监管部门的监管绩效取决于激励及约束机制的侧重点及其效率。研究结论:完善土地出让市场的着力点在于对监管部门和出让部门的行为空间与利益空间的规制,同时应进行相应的经济及行政体制改革。     

Value creation and destruction in cross‐border acquisitions: an empirical analysis of foreign acquisitions of U.S. firms

We conduct an investigation of the sources of gains and losses in cross‐border acquisitions in light of different motives for undertaking these transactions: synergy‐seeking, managerialism and hubris. We find that the data are consistent with the expectation that multiple sources of value creation exist in synergistic cross‐border acquisitions: asset sharing, reverse internalization of valuable intangible assets, and financial diversification. Gains accrue to bidder firm shareholders only for the least fungible of these sources of gains, i.e., reverse internalization. For value‐destroying acquisitions that are expected to be driven by managerialism, we find that the data are consistent with only one of the sources of value destruction that we examine, i.e., risk reduction. In these acquisitions, the evidence also suggests that the relative size of the target to the bidder mitigates the negative effects of risk reduction. Our results underscore the importance of considering the implications of alternative behavioral assumptions in empirical strategy content research. Copyright © 2002 John Wiley & Sons, Ltd.     

Motivations for pleasure vacation

Crompton, John L., “Motivations for Pleasure Vacations,” Annals of Tourism Research, October/December 1979, VI(4):408–424. The study is concerned with identifying those motives of pleasure vacationers which influence the selection of a destination. It also seeks to develop a conceptual framework capable of encompassing such motives. Empirically nine motives were identified. Seven were classified as socio-psychological, namely: escape from a perceived mundane environment, exploration and evaluation of self, relaxation, prestige, regression, enhancement of kinship relationships, and facilitation of social interaction. The two remaining motives, novelty and education, formed the alternate cultural category. The latter were noted to be at least partially aroused by the particular qualities that a destination offered. By contrast socio-psychological motives were found to be unrelated to destination attributes. Here the emphasis shifted from the destination itself to its function as a medium through which socio-pschological needs could be satisfied. The research data suggest that the tourist industry may usefully pay greater attention to socio-psychological motives in developing product and promotion strategies.     

中西渠道联盟形成动机比较研究

与西方企业缔结渠道联盟是中国企业市场营销的重要战略。由于联盟形成动机差异导致渠道联盟失败率居高不下,因此了解中西渠道联盟动机的差异非常关键。文章基于政治经济学框架提出了渠道联盟形成的动机分析框架,并就中西分销渠道不同背景下各类联盟成员加入联盟的动机进行了系统分析与比较研究。以期通过明确中西渠道联盟动机的差异性,为中国企业的渠道联盟实践提供理论指导。     

The Impact of Unionization Structures with Heterogeneous Firms and Rent‐Sharing Motives

How are unemployment and output affected if wages are set on the sector level rather than firm level? We take a new look at this question, allowing for heterogeneous firms and rent‐sharing motives. Without these motives, employment and output are lower under sector‐level wage‐setting due to higher wage markups. With rent‐sharing motives, however, firm selection is higher under sector‐level wage‐setting, which tends to increase employment and output, thus counteracting the markup effect. Simulations show that the firm‐selection effect decreases the difference between the two unionization structures substantially but it does not change the signs of the effects on output and employment.     

To Be or Not to be Temp? An Analysis of the Moderating Role of Motives for Accepting Temporary Employment

We investigate the role of contract volition and motives for accepting temporary employment in the relationship between precariousness of life and negative psychological symptoms in a sample of 275 Italian temps. Results suggest that the negative effect of contract volition on negative psychological symptoms is partially mediated by precariousness of life. A moderated mediation model shows that specific motives moderate the negative effects of contract volition on precariousness of life, so that when contract volition is higher, workers with weaker motives feel less precarious. This study broadens our understanding of temporary employment outcomes by showing that the negative consequences of precariousness of life seem to be less troublesome among temporary workers with higher contract volition and lower motivation. © 2018 ASAC. Published by John Wiley & Sons, Ltd.