Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1002365 | Journal of World Business | 2015 | 14 Pages |
Abstract
Building on agency theory and international business research, this paper explores how parent firm and subsidiary ownership factors affect FDI location decisions in emerging economies. Our analysis suggests that ownerships of block-shareholders in the parent firm (i.e., controlling family, non-family TMT members and institutional investors) and equity stake in a subsidiary owned by the parent company are positively associated with FDI location decisions in less-explored and risky areas. However, the effects of parent firm and subsidiary ownership factors may substitute for each other with respect to their integrated effect on dealing with risks associated with FDI location decisions.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Yung-Chih Lien, Igor Filatotchev,