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Title:Asset ownership and foreign-market entry PDF Logo
Authors:Raff, Horst
Ryan, Michael
Stähler, Frank
Issue Date: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
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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