Search results for "Foreign"
showing 10 items of 915 documents
(When) Should We Use Foreign Direct Investment Data to Measure the Activities of Multinational Corporations? Theory and Evidence
2016
This paper reviews the different concepts of measuring activities of multinational corporations. It aims at working out the economic relationships that theoretically exist between these measures under general economic assumptions and then empirically investigates to which extent such relationships exist in the data. As a main conclusion, foreign direct investment (FDI) stock data is indeed a good proxy for measuring most real economic activities of multinational firms. Discrepancies between FDI stock and other data can to a large extent be given a reasonable economic meaning, but observed asset-to-employment patterns in multinational production also call for more thorough future research.
Financial Determinants of Foreign Direct Investment
2008
We argue that mainstream FDI theory underplays financial motivations for international investment, and suggest several possible channels for a distinct cost-of-capital effect on FDI. Using a sample of European firms' cross-border acquisitions, and controlling for traditional firm-level determinants of FDI, we find strong evidence in favor of a cost-of-equity effect, whereas the effect of debt costs is indeterminate. We further find that financial determinants are more important for firms originating in relatively less financially developed countries and for firms with high knowledge intensity.
Homeward Bound FDI: Are Migrants a Bridge over Trouble Finance?
2016
Migrants can lower cross-border investment barriers, help investors by providing information about their homeland and reduce transaction costs by sharing expertise on regulations, customs and procedures. In addition to generating these well-known networking effects, migrants can also provide valuable information about local finance, thereby easing the credit constraints foreign investors faced during the 2007 financial crisis. This paper sheds new light on the underlying mechanisms through which migration may affect foreign investment in the migrant's homeland by distinguishing between the effects on FDI's intensive and extensive margins. Gravity estimates for 140 countries for the period 2…
Mergers and Acquisitions (M&A) as Modern Ways of Investments
2015
The decrease in business activity and the fall in the production volume in the sectors of economy relying on long-term crediting is characteristic feature of the modern recessions. The pessimistic expectations of entrepreneurs concerning product demand leads to falling direct investment into business despite unlimited investment opportunities due to the developed capital markets nowadays. As a result it has created the opportunity for the development of the acquisition of enterprises. Potential investors are different and their investment motivation is different, but the goal is the same – to increase the value of the business and its efficiency as a result of mergers and acquisitions. Ho…
Trading Nokia: The roles of the Helsinki vs the New York stock exchanges
2004
We use the Autoregressive Conditional Duration (ACD) framework of Engle and Russell (1998) to study the effect of trading volume on price duration (ie the time lapse between consecutive price changes) of a stock listed both in the domestic and the foreign market. As a case study we use the example of Nokia's share, which is actively traded both in the Helsinki Stock Exchange and the New York Stock Exchange (NYSE). We find asymmetry in the volume-price duration relationship between the two markets. In the NYSE the negative relationship is much stronger and exists both during and outside common trading hours. Outside common trading hours no such relationship is significant in Helsinki. Based …
Exchange Rate and Inflation Risk Premia in the UME
2012
This paper tests the effects of exchange rate and inflation risk factors on asset pricing in the European Union (EU) stock markets. This investigation is motivated by the results of Vassalou (2000) [Journal of International Money and Finance, 19, 433-70] showing that both exchange rate and foreign inflation are generally priced in equity returns, and the opportunity to evaluate the causality between these sources of risk after the elimination of the EU currency risks because of the adoption of the single currency. Our results show that both exchange rate and inflation risks are significantly priced in the pre- and post-euro periods. Moreover, the size of exchange rate and inflation risk pre…
Good English Pronunciation Users and Their Pronunciation Learning Strategies
2015
The study investigates pronunciation learning strategies (PLS) deployed by those with good English pronunciation, as well as their beliefs concerning the variables that affect pronunciation competence. In order to collect data for analysis this study surveyed 61 participants who had learned English as a foreign language. They comprised 28 higher education teachers and scholars specialising in English phonetics and phonology, who were defined as good pronunciation users (GPU), and 33 EFL teacher training students, viewed as average pronunciation learners (APL). This cohort responded to a survey on pronunciation learning strategies and expressed their views on several aspects affecting the L2…
Sea Urchin Granuloma
2005
Sea urchin granuloma is a chronic focal response to the puncture of sea urchin spines, induced by the permanence of prickle remnants in the wound. Until recent years, it was thought to represent a foreign body reaction but, following the description, in 2001, of its several histologic forms, the spectrum of its likely pathogenetic mechanisms has widened to include the immune responses to different non-self antigens. Depending on individual reactivity, in most cases, a limited number of granulomas is observed, however numerous the punctures may be. We report a case with more than 200 lesions and a tuberculoid histologic pattern, indicative of an immune reaction.
The charter of foreigners merchant ships in the expulsion of the Andalusia Moriscos
2009
El embarque de moriscos a bordo de navíos mercantes de origen extranjero constituye una faceta interesante en el estudio del proceso de expulsión andaluz. Debido a la escasa participación de las escuadras reales y la necesidad de llegar a acuerdos concretos con los que suministrar embarcaciones para el transporte de los moriscos, la Corona y sus representantes se verían obligados a llegar a diferentes compromisos con los cónsules de las naciones de extranjeros, y algunos mercaderes particulares, para garantizar unos traslados que, de otra manera, se hubieran retrasado en exceso complicando toda la operación. De este modo y con el paso de las semanas, acabaría por evidenciarse el peso especí…
To lead or to wait? An application to internationalization strategies under demand uncertainty
2019
We examine the exports versus foreign direct investment (FDI) decision under demand uncertainty for an asymmetric cost duopoly. One of the firms can lead entry before demand realization or retain flexibility enjoying an informational advantage. When the time value of information is small and for sufficiently low investment costs, follow‐the‐leader behavior in FDI arises. Relatively high investment (fixed) costs result in follow‐the‐leader exporting behavior. When the time value of information becomes significant, the potential leader will opt for a wait‐and‐see strategy. For intermediate values of investment costs, the efficient firm invests, while the rival chooses to export.