AIB 29.pdf (251 kB)
MNE theory and the importance of corporate governance
This paper makes a contribution to the theory of the multinational enterprise (MNE) and, in particular, to why firms undertake foreign direct investment (FDI) rather than alternative strategies. We first argue that it is vital to distinguish between asset-exploiting FDI and assetaugmenting FDI, as the alternative strategies available to the firm differ in each case and hence the rationales for FDI must also differ. Furthermore, given the predominance of controlling shareholders (family, State, institutional) in many firms worldwide, we stress that MNE theory should embrace consideration of the different objectives, risk attitudes and decision-making time horizons of important stakeholders.
History
Publication status
- Published
File Version
- Accepted version
Publisher URL
Presentation Type
- paper
Event name
Academy of International Business (AIB) 2016 Annual MeetingEvent location
New OrleansEvent type
conferenceEvent date
27-30 Jun 2016Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes