Based on Real Options Theory and taking the perspective of growth options exercising, as well as Tobit model, this paper explores how Japanese enterprises adjust ownership structures in their affiliates as a portfolio in China. Empirical results show that: both demand uncertainty and industry...

We explore the effect of foreign direct investment on economic growth in developing countries, distinguishing between mergers and acquisitions ("M&As") and "greenfield" investment. A simple model captures the key difference between the two types of FDI: unlike greenfield investment, M&As partly...

We investigate the relationship between expatriate-deployment levels and the growth of international subsidiaries over time. Latent-curve analysis reveals that higher subsidiary growth over the long term is achieved through both (a) a higher proportion of expatriates at subsidiary founding and...