Forssbæck, Jens; Oxelheim, Lars - Institutet för Näringslivsforskning (IFN) - 2008
We argue that mainstream FDI theory underplays financial motivations for interna-tional investment, and suggest several … possible channels for a distinct cost-of-capital effect on FDI. Using a sample of European firms’ cross-border acquisitions …, and controlling for traditional firm-level determinants of FDI, we find strong evidence in favor of a cost …