This chapter focuses on the role of corporate financial strategies to improve firms' market valuations, and thus lower their cost of capital. The identification of successful strategies is accomplished within an overall strategic framework and related to how the firm perceives the degree of...

This paper investigates how multinational firms choose the capital structure of their foreign affiliates in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, such...

The immediate U.S. taxation of foreign subsidiaries' passive, but not active income is a scenario of increasing practical importance. This paper builds on Alvin Warren's recent analysis of this partially deferral-tempering case. It clarifies some of the legal and economic mechanics behind...

This paper investigates how multinational firms choose the capital structure of their foreign affiliates in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, such...

We study the impact and propagation of economic policy uncertainty (EPU) via subsidiary networks of U.S. multinational corporations (MNCs). We find that increases in host-country EPU lead to significant decreases in MNC valuations. We document heterogeneous effects across important firm- and...

This paper investigates how multinational firms choose their capital structure in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, like expropriation, corruption...

In this paper we analyze the conditions under which a foreign direct investment (FDI) involves a net capital flow across countries. Frequently, foreign direct investment is financed in the host country without an international capital movement. We develop a model in which the optimal choice of...

This paper studies the direct effect of foreign investment on target firm operating performance and growth. Foreign-invested firms grow in size but not in productivity compared with non-invested firms over a four-year horizon. Decomposing foreign investment into foreign direct investment and...

Claims by company shareholders seeking damages from governments for so-called "reflective loss" now make up a substantial part of the investor-state dispute settlement (ISDS) caseload. (Shareholders' reflective loss is incurred as a result of injury to "their" company, typically a loss in value...

Using a country-level panel data set of China's outward foreign direct investment (OFDI) during 2003-2015, we find that China increases its direct investment in an economy endowed with natural resources, which increases the exports of the resources to China. Facilitated by the industry-level...