Whether a firm is able to attract foreign capital and whether it may participate at the export market depends on whether the fixed costs associated with doing so are at least covered by the incremental operating profits. This paper provides evidence that success for some firms in attracting foreign investors and in exporting appears to reduce the associated fixed costs with exporting or foreign...

This paper considers the private and public incentives for firms to merge in the face of foreign entry. We set up a standard linear Cournot model of competition within a country and consider the gains to two merging firms and to national welfare in a series of scenarios: homogeneous and heterogeneous firms with and without synergies from mergers. We look first at optimal domestic firm numbers f...

Foreign firms terminate their Securities and Exchange Commission registration in the aftermath of the Sarbanes–Oxley Act (SOX) because they no longer require outside funds to finance growth opportunities. Deregistering firms’ insiders benefit from greater discretion to consume private benefits without having to raise higher cost funds. Foreign firms with more agency problems have worse stock-pr...

Technological skills of inventors have become important for innovation and competitiveness of firms in the knowledge based industries. With the emerging globalization, firms that make use of technological competence of inventors worldwide innovate and prosper faster. The present study examines how national or foreign firms leverage the technological competence of inventors from Asian and other ...

We investigate Spanish manufacturing firms’ global sourcing decisions with regard to their ownership structure and their locational choice of intermediate input production by exploring a firm-level panel data set covering the years 2000-2007. We distinguish four sourcing categories (foreign integration, foreign outsourcing, domestic integration, domestic outsourcing) thus providing a much more ...

We use data on 3,948 Chinese firms obtained from the World Bank’s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 65 per cent of the exporting firms start export operations within three years. Foreign shareholders within the firm and...

We quantify the effects of lending and balance sheet channels on corporate investment during large crises in emerging markets. The depreciated currency creates investment opportunities in the tradable sector but firms might be financially constrained due to: 1) a deterioration of their balance sheet via un-hedged foreign currency debt (balance sheet channel) and 2) a decline in the supply of cr...

This paper examines the horizontal and vertical export spillovers of foreign direct investment (FDI) on China’s manufacturing domestic firms by using firm-level census data over the period of 2000–03. Based on a Heckman two-step procedure combining first differencing and instrumental variable regression techniques, we find that FDI has had a positive impact on the export value of domestic firms...

This paper examines the effects of technology spillover from FDI based on panel data analysis of Chinese large-scale domestic manufacturing industries. We use the panel data of 27 Chinese manufacturing industries from 2001 to 2007. We estimate technology spillover effects by two steps. First, we estimate the total factor productivity of domestic firms’ and foreign firms’ by Cobb-Douglas Product...

We use data on 3,948 Chinese firms obtained from the World Bank’s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 65 per cent of the exporting firms start export operations within three years. Foreign shareholders within the firm and...