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The research on the location choice for Foreign Direct Investment (FDI) is traditionally restricted to a choice between … considered it is mostly limited to Greenfield investments. The vast majority of FDI, however, takes place in the form of cross …-border Mergers & Acquisitions (M&As), and for this form of FDI (empirical) research on location choice within countries has been …
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Repatriation taxes reduce the competitiveness of multinational firms from tax credit countries when bidding for targets in low tax countries. This comparative disadvantage with respect to bidders from exemption countries violates ownership neutrality, which results in production inefficiencies...
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We conduct an empirical investigation into the effects of foreign ownership on worker skills using firm-level data from Spain. To control for endogeneity bias due to selection into foreign ownership, we combine a difference-in-differences approach with a propensity score weighting estimator. Our...
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In contrast to empirical evidence, recent theories of cross-border mergers and acquisitions (M&As) assume perfect knowledge transfers - from high to low productivity firms - between acquirer and target. Using the Melitz (2003) model of heterogeneous firms, we develop a matching model of...
Persistent link: https://www.econbiz.de/10011862878
In this paper, we study the role of Confucius Institute in supporting internationalization of Chinese enterprises. Employing a panel dataset containing 66 Belt-Road countries and 75 non Belt-Road countries from 2006 to 2017, we find that the Confucius Institute has had a positive effect on...
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In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a … M&A investments. Based on a novel firm-level dataset on German outbound FDI, we find evidence that location decisions of … finding is consistent with a (partial) capitalisation of taxes in the acquisition price when the FDI project takes the form of …
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