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unobservability of contract terms favor cross-border acquisition relative to greenfield investment. We also show that while a cross …-border acquisition reduces welfare, greenfield investment can be welfare-improving. These results suggest that policy should distinguish …
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for a foreign direct investment are considered: Greenfield investment versus acquisition. In contrast to existing … approaches, the acquisition price and the profits under both entry modes are endogenously determined. Interestingly, we find that … it is acquisition. …
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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...
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A host of external (global and regional) and internal (country-specific) factors affect Multinational Enterprises' Foreign Direct Investment (FDI) decisions. Differentiating the two entry modes of FDI (mergers and acquisitions [M&A] and Greenfield investment), this paper aims to empirically...
Persistent link: https://www.econbiz.de/10009696217