Foreign ownership and centralized collective bargaining: Direct and indirect influences

2021 ◽  
pp. 002218562110560
Author(s):  
Uwe Jirjahn
Keyword(s):  
Collective Bargaining ◽  
Critical Level ◽  
Foreign Ownership ◽  
Positive Influence ◽  
Direct Influence ◽  
Firm Level ◽  
Indirect Influence ◽  
Level Data ◽  
The Empirical Analysis ◽  
Theoretical Considerations

Using firm-level data from Germany, this study examines the link between foreign ownership and the coverage by centralized (multi-employer) bargaining agreements. Conforming to theoretical considerations, the empirical analysis shows that it is important to distinguish between a direct and an indirect influence of foreign ownership on centralized collective bargaining. The direct influence of foreign ownership lowers the probability that a firm is covered by a centralized agreement. The indirect influence works through the unionization of the workforce. If the size of the firm does not exceed a critical level, the indirect influence counteracts the direct influence. Foreign ownership leads to a higher share of union members which, in turn, has a positive influence on the coverage by a centralized agreement. However, in very large firms the indirect influence appears to be negative. Foreign ownership is associated with a lower share of union members.

A Further Empirical Investigation of German Firms’ Financial Structure and Ensuing Risks / Finanzierungsstrukturen und Risiken im Unternehmenssektor der Bundesrepublik Deutschland – Weitere Ergebnisse anhand von Unternehmensdaten

2001 ◽  
Vol 221 (5-6) ◽  
Author(s):  
Kai Kirchesch ◽  
Marc Sommer ◽  
Peter Stahlecker
Keyword(s):  
Financial Risk ◽  
Empirical Investigation ◽  
Empirical Distribution ◽  
Risk Measures ◽  
Balance Sheet ◽  
Financial Risks ◽  
Firm Level ◽  
Industrial Enterprises ◽  
Level Data ◽  
The Empirical Analysis

SummaryThe changes in the financial structures of West German industrial enterprises have been investigated in Größl/Stahlecker/Wohlers (2001). The empirical analysis confirmed the hypothesis that small and medium-sized enterprises are confronted with higher - and even rising - financial risks than larger enterprises. Thresholds were introduced to serve as signals for lenders to tighten credit conditions or even file for bankruptcy. Unfortunately, the empirical distribution of the financial ratios could not be quantified, because the analysis has been - due to reasons of availability - based on aggregate data. The present paper’s aim is to check the robustness of the results and to quantify the development of the financial risk measures by using firm-level data that have been the base for the Bundesbank’s special evaluation of the balance sheet statistic of West German enterprises. Our results confirm the higher risk position of small and medium-sized enterprises in the period 1987-1996.

scholarly journals EXPORT BEHAVIOUR OF MANUFACTURING FIRMS IN INDONESIA, 1990-2000

2010 ◽  
Vol 12 (2) ◽  
pp. 227-242
Author(s):  
Sahminan Sahminan ◽  
Yati Kurniati
Keyword(s):  
Foreign Ownership ◽  
Manufacturing Firms ◽  
Lower Proportion ◽  
Manufacturing Industries ◽  
Firm Level ◽  
Panel Data Regression ◽  
Level Data ◽  
Data Regression ◽  
Export Behaviour ◽  
Firm Level Data

This paper examines export behaviour of manufacturing firms in Indonesia. We use firm-level data from survey of medium and large Indonesian manufacturing industries over the period 1990-2000. Using panel data regression technique, we find the following regularities. First, there is a persistency in the firm’s decision to export as well as proportion of exported output. Second, higher wage, larger number of production employment, higher productivity and higher share of foreign ownership lead to higher probability of a firm to export. Third, higher wage leads to higher proportion of exported output. However, higher productivity or higher share of foreign ownership leads to lower proportion of exported output. Fourth, while real exchange rate does not significantly affect the probability of firms to export, it significantly affects the proportion of exported output. Fifth, both probability to export and proportion of exported output was significantly much lower during the 1997/1998’s Asian crisis. Finally, looking at the export behaviour across industries, the estimation results show that there is a variation of export behavior across industries.Keywords: Export, manufacture, Indonesia.JEL Classification: F14, F13, D21

scholarly journals Exceptional performance of multinational suppliers: theory and evidence

2020 ◽  
Author(s):  
Van Pham ◽  
Alan Woodland ◽  
Mauro Caselli
Keyword(s):  
Empirical Analysis ◽  
Direct Investment ◽  
Labour Productivity ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Ex Ante ◽  
Theoretical Predictions ◽  
Set Up ◽  
The Empirical Analysis

AbstractThis paper focuses on an unexamined area of trade—the behaviour of heterogeneous intermediate suppliers facing final producers of different ability and pursuing different strategies. To inform our empirical analysis, we develop a theoretical model to analyse the choice of an intermediate supplier between selling to domestic producers, selling to multinational producers and/or exporting to foreign producers. The model’s predictions are: (i) sufficiently productive firms self-select into supplying to multinationals or exporting, while the most productive firms pursue both strategies, and (ii) the order of preferred strategies between supplying to multinationals and exporting depends on foreign direct investment inflows and export set-up costs. The paper uses firm-level data with rare information about multinational suppliers from 29 countries in Europe and Central Asia in 2002 and 2005 to test these theoretical predictions. The empirical analysis confirms both of our model’s predictions. Moreover, it suggests that multinational suppliers are more likely to have higher required levels of ex-ante labour productivity than exporters, implying that exporting is easier and a more popular choice for firms.

scholarly journals Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

2004 ◽  
Vol 94 (3) ◽  
pp. 605-627 ◽  
Author(s):  
Beata Smarzynska Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Ownership ◽  
Foreign Investments ◽  
Firm Level ◽  
Productivity Spillovers ◽  
Level Data ◽  
Firm Level Data ◽  
Foreign Affiliates ◽  
Backward Linkages

Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The analysis, based on firm-level data from Lithuania, produces evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local suppliers in upstream sectors. The data indicate that spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.

scholarly journals The Effects of Irreversibility and Uncertainty on Business Investments: A New View of Investment

2014 ◽  
Vol 5 (3) ◽  
pp. 7-20
Author(s):  
Katarína Belanová
Keyword(s):  
Empirical Analysis ◽  
Investment Decision ◽  
Firm Level ◽  
Factors Affecting ◽  
Real Options Approach ◽  
Investment Decision Making ◽  
Level Data ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This article presents a survey of recent theoretical, as well as empirical, contributions concerning business investments, which help to explain the investment decision making of companies. These contributions emphasize the relevance of idiosyncratic factors affecting investment decisions such as the degree of irreversibility and uncertainty, interactions between these factors may generate an opportunity cost equivalent to the exercise of an option and so they add an important dimension to the neoclassical theory of investment (also called standard or orthodox theory of investment). This theory has not recognized the important qualitative and quantitative implications of this interaction, what can explain some of its failures. We investigate the irreversibility of investments and the impact this has on the nature of the relationship between investment and uncertainty in the way of empirical analysis. The empirical analysis uses firm – level data and is based on a survey of 53 automotive suppliers, which was carried out during the year 2011. We find supportive evidence for the fact that uncertainty is negatively associated with planned investments of the companies surveyed, which remains true also in the presence of irreversibility. At the end we demonstrate the core of the real options approach in a form of a practical example.

scholarly journals PERILAKU EKSPOR PERUSAHAAN MANUFAKTUR DI INDONESIA, 1990-2000

2010 ◽  
Vol 12 (2) ◽  
pp. 243-259
Author(s):  
Sahminan Sahminan ◽  
Yati Kurniati
Keyword(s):  
Foreign Ownership ◽  
Manufacturing Firms ◽  
Lower Proportion ◽  
Manufacturing Industries ◽  
Firm Level ◽  
Panel Data Regression ◽  
Level Data ◽  
Data Regression ◽  
Export Behaviour ◽  
Firm Level Data

This paper examines export behaviour of manufacturing firms in Indonesia. We use firm-level data from survey of medium and large Indonesian manufacturing industries over the period 1990-2000. Using panel data regression technique, we find the following regularities. First, there is a persistency in the firm’s decision to export as well as proportion of exported output. Second, higher wage, larger number of production employment, higher productivity and higher share of foreign ownership lead to higher probability of a firm to export. Third, higher wage leads to higher proportion of exported output. However, higher productivity or higher share of foreign ownership leads to lower proportion of exported output. Fourth, while real exchange rate does not significantly affect the probability of firms to export, it significantly affects the proportion of exported output. Fifth, both probability to export and proportion of exported output was significantly much lower during the 1997/1998’s Asian crisis. Finally, looking at the export behaviour across industries, the estimation results show that there is a variation of export behavior across industries.Keywords: Export, manufacture, Indonesia.JEL Classification: F14, F13, D21

scholarly journals Foreign ownership and firm-level stock return volatility in Taiwan

2017 ◽  
Vol 14 (3) ◽  
pp. 261-269 ◽  
Author(s):  
Yi-Chein Chiang ◽  
Ming-Han Chan
Keyword(s):  
Stock Return ◽  
Global Financial Crisis ◽  
Foreign Ownership ◽  
Return Volatility ◽  
Firm Level ◽  
Stock Return Volatility ◽  
Level Data ◽  
Stabilizing Effect ◽  
Sample Test ◽  
The Global Financial Crisis

With the increasing presence of foreign investors and their importance in the stock markets, the authors investigate the effects of foreign ownership on stock return volatility by using Taiwanese firm-level data covering a period from 1994 to 2014. The results demonstrate that foreign ownership is negatively correlated with stock return volatility during the whole sample period, the so-called stabilizing effect. For the sub-sample test, this effect is the largest during the period 2002–2007, the years following Taiwan joins WTO. However, the stabilizing effect did not exist after the global financial crisis in 2008 and recent years. The results are also robust after correcting the potential endogeneity issue.

Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries

2020 ◽  
Vol 19 (2) ◽  
pp. 103-118
Author(s):  
Hyelin Choi ◽  
Hyo Sang Kim
Keyword(s):  
Exchange Rate ◽  
Value Chain ◽  
Foreign Ownership ◽  
Foreign Subsidiaries ◽  
Firm Level ◽  
Level Data ◽  
Exchange Rate Movements ◽  
Negative Effect ◽  
Firm Exports

This paper examines the role of global production linkages on exchange rate elasticities by using Korean firm-level data. Firms with foreign ownership or with foreign subsidiaries, which are linked to global production, tend to weaken the effects of exchange rate movements on firm exports. We find the exchange rate elasticities of firm exports are significant and tend to have a negative effect on domestic firms or firms with no foreign subsidiary. In contrast, the results show an insignificant effect on foreign-owned firms or firms with foreign subsidiaries. After controlling for the export to foreign affiliates, we still find the estimated exchange rate elasticities of exports to be statistically insignificant, although it has a negative and relatively large impact for firms with global production linkages. Moreover, firms with a higher global value chain integration measure or more imported intermediate inputs have a significantly lower exchange rate elasticity of exports. This indicates that the developments in global production linkages have an important role in explaining lower exchange rate elasticity to exports.

Determinants of Business Fixed Investment: Evidence from German Firm-Level Data

2016 ◽  
Vol 236 (5) ◽  
pp. 533-556
Author(s):  
Thiess Buettner ◽  
Anja Hoenig
Keyword(s):  
Empirical Analysis ◽  
Cost Of Capital ◽  
German Economy ◽  
Business Climate ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Business Survey ◽  
The Cost ◽  
The Empirical Analysis

Abstract This paper employs a novel firm-level dataset that combines financial accounts of German firms with data from a business survey to shed new light on the demand for capital. The empirical analysis employs firm-specific indicators in order to explore the effects of sales, the cost of capital and indicators of the business climate, which are used by the ifo Institute to provide a leading indicator for the German economy. The empirical results support a robust significant effect of a firm’s cost of capital on the stock of capital with an elasticity not significantly different from –1. Controlling for sales, a good rather than normal business situation is found to be associated with about 8 % higher investment.

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