Resumo (PT):
When a company decides to invest abroad, it can do it through the establishment of a new
firm (greenfield investment) or by the purchase of an already existing firm. Although there is
a vast empirical literature on the macroeconomic determinants of aggregate FDI, there are just
a few studies examining the location-specific determinants of each entry mode. The aim of
this study is to extend the previous work by Globerman and Shapiro (2005) through the
analysis of panel data of 53 countries over the period 1996-2006, in order to identify the
potential location-specific determinants of both M&A and greenfields. We have found
evidence that there is a group of mode-encompassing variables which are common to all entry
modes (such as economy’s size, openness, governance and human development index) and
mode-specific variables. Investor’s protection and cultural variables seem to play an
important role in the explanation of M&A and greenfields, respectively.
Abstract (EN):
When a company decides to invest abroad, it can do it through the establishment of a new
firm (greenfield investment) or by the purchase of an already existing firm. Although there is
a vast empirical literature on the macroeconomic determinants of aggregate FDI, there are just
a few studies examining the location-specific determinants of each entry mode. The aim of
this study is to extend the previous work by Globerman and Shapiro (2005) through the
analysis of panel data of 53 countries over the period 1996-2006, in order to identify the
potential location-specific determinants of both M&A and greenfields. We have found
evidence that there is a group of mode-encompassing variables which are common to all entry
modes (such as economy’s size, openness, governance and human development index) and
mode-specific variables. Investor’s protection and cultural variables seem to play an
important role in the explanation of M&A and greenfields, respectively.
Language:
English
Type (Professor's evaluation):
Scientific