We examine managerial work values and subsequent behaviors of Vietnamese managers that foreign investors may face doing business in Vietnam. To establish a global reference-point, we compare the managerial values of Vietnamese managers with those of Chinese and U.S. managers. The findings from this exploratory study, while not always intuitive, should help foreign investors to better understand...

We investigate whether productivity differences explain why some manufacturers sell only to the domestic market while others serve foreign markets through exports and/or FDI. When overseas production offers no cost advantages, our model predicts that investors should be more productive than exporters. An extension allowing for low-cost foreign production can reverse this prediction. Data for 10...

China has opened up its telecommunication equipments market for nearly two decades and many equipment manufacturers generate most of the revenues form this market. With China’s imminent entry of the World Trade Organization (WTO), the foreign investors are eager to occupy the Chinese telecommunications services market, which is currently closed to foreign investments. To find a niche in this ma...

This study examines the liability of foreignness (LOF) faced by multinational enterprises (MNEs), and the effects of strategies employed to overcome the liability. Based on a sample of 3,085 Sino-foreign joint ventures formed in manufacturing sectors in China, the authors find that Hong Kong investors, who are often perceived to have lower LOF than investors from other countries, are more activ...

The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-àvis the host country. India provides an interesting case for analyzing the interplay between countryof-origin characteristics and host-country characteristics and their respective effects on ownership...

Using data on 2884 manufacturing equity joint venture projects in China during 1993-1996, this paper estimates the importance of host wages to location choice and investigates how these decisions vary with the factor intensity of the activity and demand conditions in China’s largest export market. We employ a control-function technique for conditional logit developed by Petrin and Train (2010) ...

When capital is sunk after it is invested, a host government facing heterogeneous foreign investors has a strong incentive to reduce preferential taxes over time in order to attract less eager investors while fully expropriating past investors. This induces investors to wait rather than invest in the initial period, and leads to loss of tax revenue. This dynamic inconsistency problem is resolve...

Using data on security holdings of 10,771 institutional investors from 72 different countries, we test whether concentrated investment strategies result in superior abnormal returns to institutional investors. We examine three measures of portfolio concentration: home country, foreign country, and industry concentration and show that portfolio concentration leads to higher abnormal returns of i...

This paper uses the perfect market segmentation setting in China’s stock market to compare the information content of the stock trades of domestic and foreign investors. We study 76 firms that issue both A-shares (for domestic investors) and B-shares (for foreign investors) and compare the price discovery role of the two segmented markets in China. Before Feb 19, 2001, the A-share market led th...

I nterest in foreign investment has been high among U.S. investors in recent years. The unprecedented growth of 401k pension plans has greatly increased the number of people who must make their own investment decisions in planning for their retirement. Many investors know that geographic diversification can improve investment returns without increasing risk. However, whether or not to invest ab...