Foreign ownership and investment: do firms locate investments close to the headquarter?
2011 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 147, no 4, 621-642 p.Article in journal (Refereed) Published
Using an international panel data set of the European pulp and paper industry, we address the issue of a possible home-bias effect for real investments in plants with foreign and domestic locations. We find that there is no effect after controlling for firm effects and plant and firm size. These findings are rubust to a number of different econometric specifications, including a difference-in-difference approach. Our findings appear to be relevant for the debate on the effect of foreign takeovers. As far as we are aware, home-bias effects in real investments within multinational firms have not been studied previously.
Place, publisher, year, edition, pages
2011. Vol. 147, no 4, 621-642 p.
Lumpy investments, Investment determinants, Pulp and paper, Foreign direct investments, Home bias, Head-quarter location
IdentifiersURN: urn:nbn:se:sh:diva-15155DOI: 10.1007/s10290-011-0098-6ISI: 000295587300002ScopusID: 2-s2.0-80053566803OAI: oai:DiVA.org:sh-15155DiVA: diva2:487226