Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19140
Authors: 
Raff, Horst
Ryan, Michael
Stähler, Frank
Year of Publication: 
2006
Series/Report no.: 
CESifo working papers 1676
Abstract: 
This paper examines the link between a firm?s ownership of productive assets and its choice of foreign-market entry strategy. We find that, controlling for industry- and country-specific characteristics, the most productive firms (i.e., those owning the most assets) will enter through greenfield investment, less productive ones will choose M&A, and the least productive ones will export. In addition, the most productive firms are shown to prefer whole ownership to a joint venture. These predictions are confirmed in an econometric analysis of Japanese firm-level data.
Subjects: 
foreign direct investment
merger and acquisition
joint venture
greenfield investment
firm heterogeneity
productivity
JEL: 
F15
F12
Document Type: 
Working Paper

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