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This study examines the spillover effects of home country institutional and cultural characteristics on the subsidiaries operating in France while they are in the process of making capital structure choices and debt maturity choices. We document that while subsidiaries financing choices are...
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Research proposes that institutions matter in shaping firm strategic behavior as well as the performance implications of such behavior but is less forthcoming with respect to how they matter especially during the process of internationalization of emerging-economy firms. We build on the...
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This paper studies the link between foreign direct investment (FDI) and institutional distance. Using a heterogeneous … firms framework, we develop a theoretical model to explain how institutional distance influences FDI, and it is shown that … undertake. We test our model using inward and outward FDI data on OECD countries. The empirical results confirm the theory and …
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The purpose of this paper is to analyse the effects of institutional distance on foreign-owned subsidiary development. In particular, a distinction between direct and indirect effects of formal and informal institutional distance is proposed and empirically tested. Based on a bespoke census...
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