Quality of institutions has been found to positively affect Foreign Direct Investment (FDI) flows. This, however, fails to explain the flow of FDI into countries with poor quality of institutions like India and China. This paper shows that FDI flows in the form of cross border mergers and...

In this paper, we attempt to understand whether business group affiliation continues to create value with improvements in institutional environment, especially with increased product market competition. This question comes at a time when there is growing awareness that business groups dominate...