Ownership control of foreign affiliates:a property rights theory perspective


This paper applies property rights theory to explain changes in foreign affiliates’ ownership. Post-entry ownership change is driven by both firm-level characteristics and by the differences in the institutional environments in host countries. We distinguish between financial market development and the level of corruption as two different institutional dimensions, such that changes along these dimensions impact upon ownership change in different ways. Furthermore, we argue that changes in ownership are affected by the foreign affiliate’s relatedness with its parent’s sector, as well as by the affiliate’s maturity. We use firm level data across 125 host countries to test our hypotheses.

Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
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Additional Information: © 2016 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Publication ISSN: 1878-5573
Last Modified: 29 Nov 2023 11:21
Date Deposited: 29 Sep 2016 14:00
Full Text Link: 10.1016/j.jwb.2016.08.003
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2016-11-01
Published Online Date: 2016-09-28
Accepted Date: 2016-08-25
Submitted Date: 2015-07-06
Authors: Driffield, Nigel
Mickiewicz, Tomasz
Temouri, Yama

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