Lindorfer, Robert, d'Arcy, Anne, Puck, Jonas. 2016. Location decisions and the liability of foreignness: Spillover effects between factor market and capital market strategies. Journal of International Management 22 (3), 222-233.


BibTeX

@ARTICLE{Lindorfer2016,
title = {Location decisions and the liability of foreignness: Spillover effects between factor market and capital market strategies},
author = {Robert Lindorfer and Anne d'Arcy and Jonas Puck},
year = {2016},
doi = {http://dx.doi.org/10.1016/j.intman.2016.04.002},
volume = {22},
number = {3},
language = {EN},
pages = {222-233},
journal = {Journal of International Management},
abstract = {In this paper we build on the liability of foreignness concept and the institutional perspective to show how an equity listing and subsidiary formations in the host market are interlinked. Using a matched sample of foreign equity-listed and domestic equity-listed European firms on EU-regulated capital markets, we find that (1) the number of prior host-market subsidiary formations increases the probability of a host-market equity listing, and (2) a prior host-market equity listing increases the number of host-market subsidiary formations. Hence, we identify spillover effects between factor market and capital market strategies. However, the extent of these spillover effects depends on institutional characteristics of the host market, where companies on smaller markets gain higher spillover effects. We contribute to international management and finance research by providing factor market strategies as a valuable source to overcome capital market liabilities of foreignness and capital market strategies as a valuable source to overcome factor market liabilities of foreignness.},
}

Abstract

In this paper we build on the liability of foreignness concept and the institutional perspective to show how an equity listing and subsidiary formations in the host market are interlinked. Using a matched sample of foreign equity-listed and domestic equity-listed European firms on EU-regulated capital markets, we find that (1) the number of prior host-market subsidiary formations increases the probability of a host-market equity listing, and (2) a prior host-market equity listing increases the number of host-market subsidiary formations. Hence, we identify spillover effects between factor market and capital market strategies. However, the extent of these spillover effects depends on institutional characteristics of the host market, where companies on smaller markets gain higher spillover effects. We contribute to international management and finance research by providing factor market strategies as a valuable source to overcome capital market liabilities of foreignness and capital market strategies as a valuable source to overcome factor market liabilities of foreignness.

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of International Management
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title Location decisions and the liability of foreignness: Spillover effects between factor market and capital market strategies
Volume 22
Number 3
Year 2016
Page from 222
Page to 233
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.intman.2016.04.002

Associations

People
Lindorfer, Robert (Former researcher)
d'Arcy, Anne (Details)
Puck, Jonas (Details)
Organization
International Business (Details)
Corporate Governance IN (Details)
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