Stähler, Frank; Ryan, Michael; Raff, Horst - Institut für Volkswirtschaftslehre, … - 2007
This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in … the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns …. In this context shared ownership acts as a screening device. Our model predicts that the multinational?s ownership share …