Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Parent‐Affilate Agency Conflicts and Foreign Entry Mode Choice

Parent‐Affilate Agency Conflicts and Foreign Entry Mode Choice We theoretically identify two levels of agency conflicts related to foreign direct investment (FDI): within a parent firm and between parent(s) and an affiliated firm. For a sample of 182 firms that announced U.S.‐related FDIs in 1995, we examine the effects of agency conflicts on the choice between a wholly owned subsidiary (WOS) and a joint venture (JV), and the relative share ownership of a parent. Firms with higher management ownership, especially the firms that made related FDIs, and firms with higher foreign affiliate monitoring efficiency are more likely to choose a WOS. Differences between U.S. and non‐U.S. parents are also examined. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

Parent‐Affilate Agency Conflicts and Foreign Entry Mode Choice

H. Young Baek
Multinational Business Review , Volume 11 (2): 24 – Jun 17, 2003
Download PDF
23 pages

Loading next page...
 
/lp/emerald-publishing/parent-affilate-agency-conflicts-and-foreign-entry-mode-choice-SSVBNwqwgu

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Emerald Publishing
Copyright
Copyright © 2003 MCB UP Ltd. All rights reserved.
ISSN
1525-383X
DOI
10.1108/1525383X200300012
Publisher site
See Article on Publisher Site

Abstract

We theoretically identify two levels of agency conflicts related to foreign direct investment (FDI): within a parent firm and between parent(s) and an affiliated firm. For a sample of 182 firms that announced U.S.‐related FDIs in 1995, we examine the effects of agency conflicts on the choice between a wholly owned subsidiary (WOS) and a joint venture (JV), and the relative share ownership of a parent. Firms with higher management ownership, especially the firms that made related FDIs, and firms with higher foreign affiliate monitoring efficiency are more likely to choose a WOS. Differences between U.S. and non‐U.S. parents are also examined.

Journal

Multinational Business Review – Emerald Publishing

Published: Jun 17, 2003

Keywords: Foreign direct investment; Joint venture; Shared ownership; Wholly owned subsidiary

There are no references for this article.