Property rights institutions, foreign investment, and the valuation of multinational firms
| Autor: | Leandro Sanz, Atanas Mihov, Detelina K. Stoyanova, Leming Lin |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance Strategy and Management 05 social sciences Context (language use) 04 agricultural and veterinary sciences International economics Foreign direct investment Investment (macroeconomics) Host country Expropriation Property rights Multinational corporation Accounting Agency (sociology) 0502 economics and business 0401 agriculture forestry and fisheries Investor protection Business Finance Valuation (finance) |
| Zdroj: | Journal of Financial Economics. 134:214-235 |
| ISSN: | 0304-405X |
| Popis: | We study the effect of property rights institutions in host countries, the institutions protecting investors from expropriation by host country agents, on the geographic structure and valuation of US multinational corporations (MNCs). We provide firm-level evidence that better property rights attract investment from MNCs. We disentangle the effects of the Stulz (2005) “twin agency problems” in the context of foreign direct investment and show that our results are not driven by legal institutions protecting investors from expropriation by corporate insiders. Further, we show that changes in the quality of property rights in locations where MNCs operate have material impact on MNCs’ valuations. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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