Foreign ownership and long‐term survival |
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| Authors: | Dorte Kronborg Steen Thomsen |
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| Institution: | 1. Center for Statistics, Copenhagen Business School, Copenhagen, Denmark;2. Center for Corporate Governance, Department of International Economics and Management, Copenhagen Business School, Copenhagen, Denmark |
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| Abstract: | We study the relative survival of foreign‐ and domestically owned companies in Denmark over more than a century (1895–2005). Contrary to previous studies that have emphasized the liability of foreignness, we find evidence of a significant survival premium for foreign‐owned companies; however, the premium declines over time and disappears entirely in the last decade leading up to 2005. Further evidence indicates that the foreign survival premium is negatively influenced by new foreign entry, and that the long‐run decline is caused by increasing competition between foreign subsidiaries. Copyright © 2008 John Wiley & Sons, Ltd. |
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| Keywords: | ownership survival foreignness subsidiaries |
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