The aim of this study is to give an overview of recent developments in Belgium's direct investment relations with the rest of the world. The analysis is based mainly on two sets of statistics drawn up by the National Bank of Belgium, namely, data on direct investment flows from the balance of...

This paper presents a tractable model of acquisitions with heterogeneous firms. Acquisitions improve aggregate productivity by transferring productive assets from the least efficient firms to more efficient firms. However, these acquiring firms are in a mid-range of productivity, whether...

Since the mid-1990s, internationally active banks around the world have pursued policies to expand their presence in emerging markets. Growing volumes of cross border banking activities have triggered a burgeoning literature on financial FDI, mainly focused on merits and pitfalls of foreign-bank...

This paper uses a unique database that includes deal and bank balance sheet information for 220 cross-border acquisitions between 1994 and 2003 to analyze the characteristics and performance effects of international takeovers on target banks. A discrete choice estimation shows that banks are...

This paper investigates whether the size of multinationals' real investments in a high-tax country is affected by profit shifting activities. A simple theoretical analysis shows that tax rates abroad impact the cost of capital in the presence of profit shifting activities of multinational...

Do firms investing abroad simultaneously reduce their domestic activity? This paper analyzes the relationship between the domestic and foreign operations of American manufacturing firms between 1982 and 2004 by instrumenting for changes in foreign operations with GDP growth rates of the foreign...

The purpose of this study is to investigate the impact of the use of derivatives and operational hedging on the foreign exchange risk exposure for a sample of 181 Australian multinational corporations. A two-stage market model is used, resulting in the implementation of a cross-sectional time...

This paper contributes to the literature on the determinants of FDI. We use a new data set covering greenfield and expansion projects to examine which factors influence the decision to invest abroad. Our empirical framework is an augmented gravity model that incorporates elements of factor...

Research on companies' internationalization has mainly focused on firm-level and country-level factors in order to explain firms' cross-border activities. With the exception of a limited number of studies emphasizing rivalistic behavior in oligopolistic industries, industry factors have been...