scholarly journals Effect Of Liability Of Foreignness And Family Ownership On Cross-Listing Location Choice

2016 ◽  
Vol 33 (1) ◽  
pp. 207-222
Author(s):  
He Soung Ahn ◽  
Hyejin Cho
Keyword(s):  
Capital Market ◽  
Foreign Capital ◽  
Cultural Distance ◽  
Family Ownership ◽  
Liability Of Foreignness ◽  
Conditional Logit Model ◽  
Institutional Economic ◽  
Conditional Logit ◽  
Cross Listing ◽  
Foreign Countries

Firms incur liability of foreignness (LOF) when they expand their businesses to foreign countries. This study examines the applicability of LOF in the context of financing in a foreign capital market. Using an alternative-specific conditional logit model, we investigate the cross-listing decisions of firms from 28 countries that select among eight target destinations from 1994 to 2008. These firms target capital markets with lower LOF, which is measured by institutional, economic, geographic, and cultural distance. Such preference is particularly stronger for firms with higher levels of family ownership, suggesting family owners’ tendency to be averse to risk is also manifested in financing context.

Acquisition versus greenfield in Colombia: Reviewing the effect of cultural distance and vicarious experience

2022 ◽  
pp. 147059582110644
Author(s):  
Mario Martínez-Avella ◽  
Ángela Alarcón-León ◽  
Giovanni Hernández-Salazar
Keyword(s):  
Cultural Distance ◽  
Cultural Dimensions ◽  
Vicarious Experience ◽  
Entry Modes ◽  
Direct Experience ◽  
Research Attention ◽  
Foreign Companies ◽  
Foreign Countries ◽  
The Individual

The relation between the cultural distance and the firm’s entry modes to foreign countries has received considerable research attention, and studies have shown the role of experience in this relation. However, previous research has only studied direct experience and neglected the study of vicarious experience. Using a sample of 355 foreign companies that entered Colombia (2007–2017), this research reviews the effect of cultural distance on entry mode choice (e.g., Acquisition vs. Greenfield) and examines the moderating role of vicarious experience in this relationship. The study concludes that the cultural distance positively affects the entry probability by acquisition, and the vicarious experience negatively affects this relationship in four cultural dimensions. If firms have vicarious experience, the effect of cultural distance on the acquisition probability is less and positively influences the entry probability by Greenfield when the cultural distance is in power distance, uncertainty avoidance, individualism, and long-term orientation. Nevertheless, vicarious experience has the opposite effect when considering the masculinity dimension. Consequently, we highlight the importance of considering vicarious experience as a different variable of direct experience and the individual effects of cultural distance dimensions for cross-cultural studies in management.

The Economic Consequences of Hosting the Olympic Games: International Evidence from Cross-Listings

2021 ◽  
Author(s):  
Albert Tsang ◽  
Kun Tracy Wang ◽  
Nathan Zhenghang Zhu ◽  
Li YU
Keyword(s):  
Host Country ◽  
Olympic Games ◽  
Economic Consequences ◽  
Host Countries ◽  
International Evidence ◽  
Cross Listing ◽  
Foreign Countries ◽  
International Reputation ◽  
Positive Effect ◽  
The Olympic Games

Based on evidence from nine countries that hosted the Olympic Games, we show that relative to firms domiciled in non-Olympics-hosting countries, firms domiciled in Olympics-hosting countries engage in more cross-listing in the years following the Olympics. The effect of hosting the Olympics on firms’ cross-listing activities is more pronounced for firms domiciled in host countries with better performance in the Games; for firms domiciled in countries hosting the Summer Olympics; and for domestic firms. We also find that cross-listing firms domiciled in an Olympics-hosting country tend to cross-list in foreign countries with a greater institutional distance from the host country after the Olympics. Finally, we document a positive effect of Olympics-hosting on the consequences of cross-listing. Taken together, our findings suggest that hosting the Olympics improves the international reputation of the host country, which helps firms domiciled in that country to overcome the liability of foreignness when making cross-listing decisions.

scholarly journals Motives for foreign direct investment location in Europe and EU enlargement

2020 ◽  
Vol 52 (8) ◽  
pp. 1681-1699
Author(s):  
Jonathan Jones ◽  
Ilona Serwicka ◽  
Colin Wren
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eu Enlargement ◽  
Conditional Logit Model ◽  
Conditional Logit ◽  
National Market ◽  
Eclectic Paradigm ◽  
Accession Process ◽  
Investment Location ◽  
The Eu

European Union (EU) enlargement of the mid-2000s is likely to have changed the motives for foreign direct investment (FDI) location between the existing Member States (the EU15) and the new entrants of Central and Eastern Europe (CEECs), but it is poorly understood. This paper uses the framework of Dunning’s eclectic paradigm and data for 35,105 foreign investments in Europe not only to examine if the motives differ between these, but also how they are affected by the enlargement. Three asset-exploiting motives of market, resource and efficiency seeking are explored using a conditional logit model for the location choice. This is separately for greenfield and brownfield FDI, involving new facilities or jobs, where the latter is efficiency seeking from an expansion or a co-location of functions. The paper finds greenfield FDI in the CEECs seeks an export platform for the EU market and a low-skilled workforce but a national market and higher skills in the EU15. Brownfield FDI differs from this for expansions only, for which the EU market is important, reflecting scale economies. Surprisingly, EU enlargement has a much stronger effect on the FDI location motives in the EU15 by increasing the importance of the European market, which is possibly because the CEEC liberalisation was ongoing throughout the accession process. The paper finds evidence that the differences in the motives between the CEECs and EU15 are narrowing over time, but they are pronounced, and it is argued that they will persist.

A Heterogeneous Conditional Logit Model of Choice

1988 ◽  
Vol 6 (3) ◽  
pp. 391 ◽  
Author(s):  
Joel H. Steckel ◽  
Wilfried R. Vanhonacker
Keyword(s):  
Logit Model ◽  
Conditional Logit Model ◽  
Conditional Logit

Chinese consumers’ willingness to pay for rice

2018 ◽  
Vol 8 (2) ◽  
pp. 256-269 ◽  
Author(s):  
Pei Xu ◽  
Hang Su ◽  
Todd Lone
Keyword(s):  
Country Of Origin ◽  
Conditional Logit Model ◽  
Chinese Consumers ◽  
Content Type ◽  
Business Opportunity ◽  
Conditional Logit ◽  
Organic Rice ◽  
Research Findings ◽  
Rice Consumption ◽  
The Impact

Purpose China’s expanded rice imports offer a profitable business opportunity for both domestic and international grain marketers. The purpose of this paper is to analyze the impact of select variables on Chinese consumers’ rice choices, specifically focusing on country-of-origin, price, organic, brand, freshness, and taste. The study concludes with suggestions for domestic and international rice marketers to help them develop more efficient rice marketing plans. Design/methodology/approach This study developed a conditional logit model to analyze survey data gathered from Chongqing and Chengdu, two of China’s largest rice consumption cities. Findings Chinese consumers are price sensitive in their rice choices. Country-of-origin is the most imperative factor affecting rice selection for lower food expense consumers but branded rice attracts the attention of higher food expense consumers. Furthermore, these higher food expense consumers are willing to pay a small premium of $0.22 for a pound of organic rice. Research limitations/implications A general trend in demand for organic rice from higher food expense consumers was identified, and this trend predicts a profitable market for organic rice sellers. However, these research findings are geographically limited and may only represent a consumption trend from the two sampled cities rather than all of China. Originality/value The study concludes with meaningful recommendations to rice marketers to aid in developing profitable market entrance strategies to China.

scholarly journals Integration Analysis of Sharia Stock in Malaysia and Indonesia

2021 ◽  
pp. 01-06
Author(s):  
Innaniar Kultsum ◽  
Dedi Budiman Hakim ◽  
Syamsul Hidayat Pasaribu
Keyword(s):  
Capital Market ◽  
Foreign Capital ◽  
Emerging Market ◽  
International Markets ◽  
Stock Index ◽  
Market Model ◽  
Var Model ◽  
Foreign Investors ◽  
Vector Autoregressive ◽  
Integration Analysis

The linkage of the Indonesian capital market with foreign capital markets began after foreign investors were allowed to participate in buying shares listed on the IDX where Indonesia is an emerging market. According to Mobius (1996), from the external side, countries including emerging markets can develop rapidly on the grounds that investors are willing to invest in international markets, investors use investment management services, and the need for diversification to avoid sudden turmoil in one market. Model nonlinear in economic and finance riset are often found. One model that can be used to capture nonlinear relationships in data is Threshold Vector Autoregressive (TVAR) model. TVAR model is generalization of VAR model, it divides the time series into different regimes that are separated by a different threshold. The purpose of this research are to see the effects between sharia stock index in Malaysia (DJMY) and Indonesia (JII), and to know the performance with TVAR model. DJMY and JII produce TVAR on lag one with two threshold and three regimes. Each regimes shows different effects.

scholarly journals FOREIGN INVESTORS AS SIGNPOSTS OF CHANGE?

Ekonomika ◽  
2009 ◽  
Vol 86 ◽  
pp. 89-105
Author(s):  
Camilla Jensen
Keyword(s):  
Regional Policy ◽  
Market Access ◽  
Home Country ◽  
Radical Change ◽  
Agglomeration Economies ◽  
Foreign Firms ◽  
Conditional Logit Model ◽  
Foreign Investors ◽  
Conditional Logit ◽  
Specific Factors

The new market economies in Eastern Europe give a unique opportunity to study how agglomeration occurs due to the shift from a planner- constructed to a firm-driven economy. This paper it is investigated how foreign direct investment affects the existing economic geography. How are these changes taking place within the existing landscape of agglomerations inherited from socialism? Do foreign investors sustain existing patterns of agglomeration or are they signposts of change? A conditional logit model is implemented on a representative dataset combining the firm and regionallevel. Controls are made for region- and firm-specific factors such as market access, pre-existing industrial concentrations, regional policy and firm size. The results suggest that foreign investors are agents of both gradual and radical change in a new market economy such as Poland. With the exception of the capital region of Warsaw, past agglomerations are on the reverse and new ones are emerging; however, industrial inertia is quite strong outside Warsaw. Results also show that agglomeration economies in the make are significantly affected by cognitive distance. Foreign firms are more likely to go where other proximate peers (in terms of home country, industry and both) are going or have already gone.

scholarly journals The Value of Social Interactions and Incentives on the Use of a Digital Contact Tracing Tool Post COVID-19 Lockdown in Singapore

2021 ◽  
Author(s):  
Zhilian Huang ◽  
Huiling Guo ◽  
Hannah YeeFen Lim ◽  
Kia Nam Ho ◽  
Evonne Tay ◽  
...  
Keyword(s):  
Social Interactions ◽  
Discrete Choice ◽  
Logit Model ◽  
Choice Experiment ◽  
Public Hospital ◽  
Contact Tracing ◽  
Monetary Incentives ◽  
Conditional Logit Model ◽  
Conditional Logit ◽  
Trade Offs

Abstract BackgroundWe assessed the preferences and trade-offs for social interactions, incentives, and being traced by a digital contact tracing (DCT) tool post lockdown in Singapore.MethodsWe conducted a discrete choice experiment (DCE) among visitors of a large public hospital in Singapore between July 2020 – February 2021. Respondents were sampled proportionately by gender and four age categories (21 – 80 years). The DCE questionnaire had three attributes (1. Social interactions, 2. Being traced by a DCT tool, 3. Incentives to use a DCT tool) and two levels each. The final dataset comprised 3839 respondents after dropping 53 with “irrational” responses. Panel fixed conditional logit model was used to analyze the data.ResultsRespondents were more willing to trade being traced by a DCT tool for social interactions than incentives and unwilling to trade social interactions for incentives. The proportion of respondents preferring no incentives and could only be influenced by their family members increases with age. Among proponents of monetary incentives, the preferred median value for a month’s usage of DCT tools amounted to S$10 (USD7.25) and S$50 (USD36.20) for subsidies and lucky draw.ConclusionsDCE can be used to elicit profile-specific preferences to optimize the uptake of DCT tools during a pandemic. Social interactions are highly valued by the population, who are willing to trade them for being traced by a DCT tool during the COVID-19 pandemic. Although a small amount of incentive is sufficient to increase the satisfaction of using a DCT tool, incentives alone may not increase DCT tool uptake.

scholarly journals The scope of foreign direct investment in South Eastern Europe and the economy of SCG

2006 ◽  
Vol 51 (168) ◽  
pp. 95-108
Author(s):  
Milan Beslac
Keyword(s):  
Economic Development ◽  
World War Ii ◽  
Foreign Capital ◽  
Foreign Direct Investments ◽  
World War ◽  
Investment Funds ◽  
Foreign Countries ◽  
South Eastern Europe ◽  
Privatization Process ◽  
Sixth Decade

Foreign direct investments have had a long tradition in the modern Serbian history. The influence of the foreign capital on the Serbian economy was particularly expressed in the period between the two World Wars, when France England, Belgium, Germany and even Russia invested into Serbia. After World War II, until the end of the sixth decade, foreign direct investments were not stipulated in the legal regulations. In the last decade of the twentieth century and at the beginning of the twenty-first, the inflow of foreign direct investments has been provided for through the economy transformation and privatization process. In the last three years, privatization has been oriented only to sale and inflow of foreign capital, while the reverse process, i.e. investment into foreign countries (outflow), has been totally neglected. Therefore, orientation only to the FDI inflow constitutes both an opportunity and an obstacle to intensive economic development. Along with that, the following laws have not been passed yet: Law on Denationalization Law on Investment Funds and Law on Takeover of Joint-Stock Companies. Such laws will ensure completion of the privatization process and create an ambience for intensive economic development.

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