Liquidity-driven FDI

Arbeitspapier

We develop a model of foreign direct investment (FDI) in which financially liquid foreign firms acquire liquidity-constrained target firms. Using a large dataset of emerging-market acquisitions, we find evidence supporting three central predictions of the model: (i) firms in external finance dependent and intangible sectors are more likely to be targets of foreign acquisitions; (ii) these targets have ownership structures with larger foreign stakes; (iii) these effects are most prominent in countries with low levels of financial development. The regression evidence indicates that liquidity is at least as economically important as technology- or trade-related motives for FDI in emerging-market economies.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Graduate Institute of International and Development Studies Working Paper ; No. 17/2014

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Contracting Out; Joint Ventures; Technology Licensing ; Industry Studies: Manufacturing: General
• Thema: foreign direct investment ; cross-border mergers and acquisitions ; financial development ; external finance dependence ; asset tangibility ; emerging markets

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Alquist, Ron ; Mukherjee, Rahul ; Tesar, Linda L.
• Ereignis: Veröffentlichung
• (wer): Graduate Institute of International and Development Studies
• (wo): Geneva
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/122098
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ