
Jens Forssbaeck
Docent, Programchef - Masterprogram i finans

Financial determinants of FDI
Författare
Summary, in English
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.
relatively less financially developed countries and for firms with high knowledge intensity.
Avdelning/ar
- Institutet för Ekonomisk forskning
- Företagsekonomiska institutionen
Publiceringsår
2008
Språk
Engelska
Fulltext
- Available as PDF - 280 kB
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Dokumenttyp
Working paper
Förlag
IFN Working Paper series
Ämne
- Business Administration
- Economics and Business
Nyckelord
- FDI
- cross-border acquisitions
- investment-q
- cost of capital
- crosslisting
- segmentation
Aktiv
Unpublished