Trade Propensities and Foreign Ownership Shares in Indonesian Manufacturing

This paper examines the relationship between trade propensities and foreign ownership shares in Indonesian manufacturing in 1992 and 1994. Foreign plants had relatively high trade propensities, and plants with high foreign ownership shares had the highest export propensities. Differences in import propensities among foreign ownership groups were relatively small. It might be argued that trade propensities determine foreign ownership shares in Indonesia, which historically waives foreign ownership restrictions for firms that export much of their output. However, this paper argues that causation runs from foreign ownership shares to trade propensities, because multinational firms have strong incentives to restrict access by uncontrolled affiliates to their international marketing networks, and because the relationship persists even when the effects of policy distortions are accounted for. Correspondingly, ownership restrictions that discriminate among foreign ownership groups are likely to reduce the exports of foreign multinational affiliates, but to have a much weaker effect on imports.     

Employment in domestic plants and foreign affiliates: A note on the elasticity of substitution

Conclusions For a high-wage country like Austria, it is commonly expected that growing employment in foreign affiliates substitutes jobs at home. This paper provides a simple framework for estimating the determinants of relative labor demand (abroad in relation to that at home) bilaterally. It is based on the relationship of (dis)economies and transportation costs under the hypothesis that goods trade is an imperfect substitute for foreign production in the case of horizontal investments, while with respect to vertical investments, goods trade is solely dependent on relative market size. The estimates are based on bilateral industry-level data on foreign affiliates and the domestic activities of Austrian manufacturing firms, covering the period 1990–1996, the 10 most important host countries and 7 industrial sectors.     

Debt financing and sharp currency depreciations: wholly versus partially-owned multinational affiliates

This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent companies. In terms of differences in performance regarding sales of both types of firms, wholly-owned affiliates have a significantly better sales performance than partially-owned affiliates in periods of crises. This finding contributes to the evidence that FDI helps in mitigating the negative consequences of sharp currency depreciation, and stresses that this effect works especially through capital inflows to wholly-owned affiliates. Second, the debt financing of partially-owned affiliates is less sensitive to the tax rate suggesting that partially-owned affiliates rely less on international debt shifting than wholly-owned affiliates. This indicates that partially-owned affiliates are less flexible to exploit tax efficient strategies.     

Do Foreign Firms Transfer Gender Norms in the Labour Market? Evidence from Sub-Saharan Africa

Closing the gender gaps in economic opportunities is crucial for boosting economic growth and the empowerment of women. In this paper, we study how foreign firms contribute in reducing gender disparities in the labour market by transferring the gender norms of their country of origin to the affiliates in the host countries. We use cross sectional data on foreign firms located in 19 Sub Saharan Africa countries in 2010 by UNIDO. We find that firms coming from more gender equal countries employ more female workers in their affiliates. This effect is more relevant for the highly skilled female workers.     

Outward investment, employment, and wages in Swedish multinationals

Examining detailed data for the home-country operations in Swedishmultinationals during the period 1986-94, this paper shows thatthere are signs of very notable structural changes in the home-countryoperations of these corporations. It also shows that the effectsvary according to economic conditions in the home country. Inthe 1980s, when the Swedish economy was characterized by hightaxes, high inflation rates, and a tight labour market, relativelyattractive jobs within the multinational corporations (MNCs)were relocated from Swedish plants to foreign affiliates. Inthe 1990s, by contrast, when the financial crisis had necessitateda host of micro- and macroeconomic reforms, the location decisionof the MNCs were more favourable for the Swedish economy. Newjobs created by the multinationals were found in activitieswith high productivity and wages. Thus, home-country effectsof foreign direct investment seem, to a large extent, to bedetermined by the home countries' economic environment.     

资源还是负担？国有资本参股对跨境并购的影响分析

跨境并购是中国企业获取海外市场与战略性资产的重要方式,已有研究表明国有资本直接参与跨境并购过程中遭遇了不少阻碍,但少有学者关注国有资本发挥的资源作用。文章则探讨了非国有制企业引入国有股东在跨境并购中获得的资源优势。以2009-2018年中国非国有上市公司跨境并购交易作为样本,研究发现：非国有制企业中国有资本持股的比例更高会带来更多的资源,有助于跨境并购的完成。而当被并购目标是上市企业、属于高科技行业以及位于制度完善度较好的东道国时,东道国合法性门槛提高,导致国有资本参股的非国有制企业仍然会遭遇到来自东道国的歧视与制度压力,削弱国有资本的资源优势。在进一步分析中验证了主效应的机制,发现国有资本能够帮助解决非国有制企业的融资困难问题,进而促进跨境并购的完成。除此之外,文章也利用工具变量法解决了潜在的内生性问题。     

Subnational institutional environment,scale competition and MNEs’ ownership levels in transition economy: evidence from China

Abstract

This paper shows that the effect of market scale competition on the ownership levels of foreign-funded enterprises is conditioned on sub-national institutional environment in China. Analysis is based on the idea that multinational enterprises subject to the dual pressures of institutional isomorphism and competition in the host country. The provincial panel data from 2001 to 2012 is used for empirical tests. This study indicates that the weaker the legal property rights protection and legal enforcement of contracts, and the higher the opening up, the more the large foreign-funded enterprises decrease their ownership levels, whereas the negative moderating effect incurred by the reduction to government intervention in business is limited significant.     

Foreign direct investment in crisis and recovery: lessons from the 1997–1998 Asian crisis

Is foreign direct investment more resilient at the onset of an economic crisis and the subsequent economic collapse in a host country compared to other forms of foreign capital inflows? Are affiliates of multinational enterprises in a crisis‐hit country better equipped to withstand a crisis and aid the recovery process by readjusting their investment, production and sales strategies compared to local firms? This article examines these issues in the context of the 1997–1998 economic crisis in Thailand, Malaysia, Indonesia, Korea and the Philippines. The findings suggest that foreign direct investment was a relatively stable source of foreign capital in the crisis context and that the affiliates of multinational enterprises were instrumental in ameliorating the severity of economic collapse and facilitating the recovery process.     

Affiliates and parent employment through foreign direct investment: a study case of substitutability or complementarity

How does outward foreign direct investment (FDI) affect employment of multinationals in the home country? Does the impact of outward investment differ among manufacturing and service sectors? Using data on Italian MNEs, this paper examines the impact of Italian outward FDI on local employment between 1998 and 2006. In particular, we investigate the relationship existing between employment in the parent company and employment in foreign affiliates by distinguishing according to host-country location and sector of activity. The results suggest that the effects of Italian outward FDI on domestic employment differ according to the sector and the country of destination. In the manufacturing sector, a weak but significant relationship of labour substitutability is found for Italian MNEs producing low-technology products in foreign affiliates localized in high-wage countries. On the other hand, a significant North–south complementarity relationship in labour demands appears in the High and Medium-high- technology sectors. In the service sector, we find strong complementarity between employment in the parent firm and employment in foreign affiliates: in particular, this regards Italian MNEs producing knowledge-intensive services both in Western affiliates and CEEC locations. These results are robust when we control for endogeneity of output and parent wages.     

The choice between an international joint venture and a wholly-owned subsidiary in a developing country under technology spillover effects

A general equilibriumm model of a foreign multinational enterprise's decisions on establishing a wholly-owned subsidiary or forming a joint venture is built on firm-specific knowledge and plant-specific knowledge when there are intraindustry and interindustry technology spillovers. The welfare effects of a host developing country under closed economies, unrestricted foreign direct investment, and the policy of minimum local ownership requirements are compared. A developing country's worry is confirmed: Introduction of competition from foreign firms may not improve the welfare of the host country. However, the minimum local ownership requirement is Pareto-superior to a closed economy.     

Complex vertical FDI and firm heterogeneity: Evidence from East Asia

This study statistically tests the validity of the mechanics of complex vertical foreign direct investment (C-VFDI) in Japanese machinery FDI to East Asia by estimating a multiple-spatial lag model. From a theoretical perspective regarding C-VFDI, the production activity of affiliates in a given country is positively related to the production activity in neighboring countries that have large differences in factor prices with the given country. Furthermore, high-productivity firms are likely to choose a C-VFDI strategy. Our empirical results show no robust geographical relationship among affiliates’ activities. However, the significantly positive relationship in wage differentials among those activities is found only for high-productivity firms.     

Exporting and FDI as Alternative Strategies

Exports and overseas production are alternative modes for servingforeign customers. Empirical studies usually find that foreignmarkets are served through both modes and that countries receivinghigh levels of exports also host large amounts of foreign directinvestment (FDI). This paper evaluates several possible waysto reconcile the facts about FDI and exports with the standardtheory of multinational corporations. We argue that coexistenceand correlation of FDI and exports are consistent with modelswhere the two modes are substitutes. This substitutive relationshipfinds collaborative evidence in the results of several papers.Nevertheless, a significant body of evidence suggests that FDIsometimes complements exports through the mechanism of stimulatingexports of intermediate goods for use by overseas affiliates.     

The political economy of immigration quotas

It is argued, using a single-sector general equilibrium model, that the economic interests of citizens of a host country in relation to immigration depend on their factor ownership. Using the median voter model, it is argued that whether a country admits further immigration depends on the country's factor ownership distributions, the generosity of its transfer programs, as well as on the prejudices about immigrants that its citizens hold.on leave from Moorhead State University.     

The performance of foreign affiliates in German manufacturing: evidence from a new database

This study presents the first investigation into the performance of foreign-controlled enterprises in German manufacturing, based on new micro-data from official statistics. A comprehensive set of performance variables is examined, not only by comparing unconditional mean values but also by accounting for other determinants and differences across distributions. The analysis reveals a foreign ownership performance premium with regard to productivity, research and development, export intensities, and average wages. Only profitability seems not to differ from German-owned enterprises. Results are verified by varying comparison groups of indigenous firms and separating for high- and low-tech sectors. Furthermore, a breakdown by country of origin and type of group head shows considerable heterogeneity within the group of foreign-controlled affiliates in Germany.     

Pollution,Factor Ownerships,and Emission Taxes

This paper employs Cournot’s (1838) model of complementary goods to analyze the optimal emission taxation under joint and independent ownership with pollution. When the marginal damage is small (large), an emission taxation is unnecessary (necessary), because the quantity (environmental) distortion is more serious than the environmental (quantity) distortion. This finding has never been presented in the literature. In contrast to Cournot (1838), a striking result is that independent ownership may be welfare superior to joint ownership when the marginal damage of externality is large in the absence of governmental intervention.     

STRUCTURAL CHANGES AND SPECIALIZATION IN BRAZILIAN INDUSTRY: THE EVOLUTION OF LEADING COMPANIES AND THE M&A PROCESS

This paper analyzes changes in the Brazilian productive structure and in ownership structures of leading companies during the 1990s. It uses information from balance sheets published in Gazeta Mercantil and from the Thomson Financial Securities Data database on M&A. The main findings are: (i) the sectoral distribution of leading companies has remained stable; (ii) there has been a strong change in the ownership structure in Brazil, with an increase in the participation of multinational enterprises (MNEs) in the sample of leading companies; (iii) this increase in participation may be partially, though not integrally, explained by M&A transactions; (iv) though the M&A process has been quite intensive in the period, productive concentration has decreased among the group of leading companies; and (v) acquiring firms have adopted specializing strategies during the period. This trend is even clearer when private national enterprises (PNEs) are examined separately.     

股权结构与独立董事对大股东侵占的治理效果

本文以2004年在沪深股市交易的1172个A股非金融上市公司为样本,将样本分别按第一大股东持股比例、所有权性质和独立董事占董事会成员比例分咸3组、2组和3组,共组成18个组合,先後考察了股权集中和私有制封大股东侵占的治理效果,在第一大股东持股比例与股权性质没有差异的情况下独立董事的治理效果。研究发现私有制并没有提高、也没有降低大股东侵占的概率;股权集中则在一定程度上降低了大股东侵占的概率;国有企业的独立董事比例与大股东侵占概率负相关;当私有产权控股股东持股比例较低时,独立董事比例的提高有利于降低大股东侵占的概率。     

股权集中度与盈余管理的实证研究——基于中国房地产业上市公司的数据

盈余管理与公司治理结构存在着密切联系,一般认为股权越集中的上市公司盈余管理程度越高。鉴于此,选取2008-2015年中国房地产业上市公司样本数据,利用门槛回归模型检验了股权集中度对盈余管理的影响,研究发现两者之间存在双重门槛效应：仅当第一大股东持股比例处于13.77%～17.73%时,股权集中度的上升对盈余管理存在促进作用。同时,研究发现相比高持股比例激励大股东监管管理层从而减少盈余管理的发生,分散的股权结构对盈余管理的抑制效应更好。     

Norway's Interwar Tanker Expansion – A Reappraisal

Abstract

This paper studies the ownership structure in the Finnish print media business in the 20^th century. It pays particular attention to the extent of family ownership in this branch, to the strategies of the owning families in order to keep control of their firms and to how the owners managed professionalisation. Finally, it asks whether media companies have had other goals (e.g. political, cultural, public service) beside pure economic ones and whether such goals have been connected to family ownership. This study shows that family ownership has been a persistent feature also in the largest Finnish media companies, although the ownership structure has undergone some transformations. For example, cultural foundations have become important owners in this branch. The owning families have also been active in top management until today. Family ownership and the cultural foundations appear to have been significant for preserving cultural goals, but, on the other hand, have to some extent restricted expansion, internationalisation and diversification. One important factor influencing the Finnish media business has been the bilingualism of the country, which is dealt with in detail.     

东道国社会信任能降低企业跨国经营的不确定性吗?——以海外子公司所有权结构设计为例

理解东道国制度环境并选择与之相适应的管理方式对企业跨国经营获得成功具有重要影响。现有文献侧重于分析东道国规制制度和认知制度对企业跨国经营的影响,对规范制度研究较少。基于来自世界价值观调查的东道国社会信任数据以及中国上市公司2009—2018年在海外设立的6 921个子公司的数据,本文探讨规范制度的核心维度——东道国社会信任如何影响中国企业对海外子公司的管控。本文提出东道国外群体社会信任和内群体社会信任影响企业跨国经营所面临的交易成本和不确定性,进而影响母公司对海外子公司的持股水平。此外,文化距离和母公司跨国经验是东道国社会信任效应的重要边界条件。本文通过揭示东道国社会信任影响海外子公司管控的理论机理,不仅增进了人们对于规范制度及其对企业跨国经营战略的影响的认识,还对企业评估东道国规范制度环境、科学地设计海外子公司的所有权结构具有启示意义。