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Paul W Beamish - One of the best experts on this subject based on the ideXlab platform.

  • host country corporate income tax rate and Foreign Subsidiary survival
    Journal of World Business, 2021
    Co-Authors: Bassam Farah, Rida Elias, Dwarka Chakravarty, Paul W Beamish
    Abstract:

    Abstract Host country tax considerations are critical to multinational enterprise (MNE) Foreign direct investment decisions, but understudied in international business (IB) research. We address this gap by examining the relationship between host country corporate income tax rates (HCCITRs) and Foreign Subsidiary survival. We develop our hypothesis drawing upon location/country-specific advantage theory and international tax literature. Our longitudinal sample (1990–2013) comprises 13,468 MNE subsidiaries in 78 countries. Results indicate a one standard deviation (7.7 %) decrease in HCCITR increases Subsidiary survival probability (at any given time) by 33 %. This effect is stronger compared to several well studied explanatory variables in IB survival analysis.

  • integration oriented strategies host market corruption and the likelihood of Foreign Subsidiary exit from emerging markets
    Journal of International Business Studies, 2020
    Co-Authors: Michael A Sartor, Paul W Beamish
    Abstract:

    Extant research has found that more pronounced levels of corruption in Foreign host emerging markets increase the likelihood that subsidiaries established by multinational enterprises (MNEs) from developed countries will exit. We synthesize insights from the organizational perspective of corruption and the integration-responsiveness paradigm to propose that integration-oriented strategies will weaken the positive relationship between corruption and the likelihood of exit at high levels of host market corruption. We develop and test hypotheses pertaining to the main effect of corruption on the likelihood of Subsidiary exit, as well as the moderating impacts of a firm’s equity ownership strategy and its expatriate staffing strategy upon this relationship. We theorize that uncertainty operates as the mechanism that underpins the corruption-market exit relationship, and that an MNE’s strategic choices with respect to its Subsidiary investments contribute to reducing this uncertainty. We find that an increase in the Foreign-investing MNE’s equity ownership share negatively moderates the positive relationship between corruption and the likelihood that Foreign subsidiaries established by developed market MNEs will exit host emerging markets when corruption is high. However, the marginal effects results do not support the expatriate staffing strategy hypothesis. Our work provides guidance to developed country MNEs that seek insights with respect to the utility of strategies that might be implemented in host emerging markets characterized by more pronounced levels of corruption.

  • an exploration of multinational enterprise knowledge resources and Foreign Subsidiary performance
    Journal of World Business, 2013
    Co-Authors: Yulin Fang, Michael Wade, Andrew Delios, Paul W Beamish
    Abstract:

    Successful international expansion requires that parent firms simultaneously transfer multiple MNE knowledge resources and their Foreign subsidiaries effectively absorb and utilize the knowledge. In this study, we examine the relationships between multiple knowledge resources (technological and marketing knowledge), the relatedness between parents and Foreign subsidiaries, and Subsidiary performance. Relatedness is specifically linked to the type of knowledge being transferred from the parent (i.e., technological relatedness versus market relatedness). We hypothesize that Subsidiary performance improves with (1) the integration of a parent firm's technological and marketing knowledge resources, (2) high technological (market) relatedness between a parent firm and subsidiaries for transfer of parent technological (market) knowledge and (3) the co-presence of high technological and market relatedness. We find general support in our analysis of pooled cross-sectional data on more than 4000 observations of Foreign subsidiaries from 572 Japanese MNEs across 47 countries. Theoretical implications and future research are discussed.

  • multinational firm knowledge use of expatriates and Foreign Subsidiary performance
    Journal of Management Studies, 2010
    Co-Authors: Yulin Fang, Guoliang Frank Jiang, Shige Makino, Paul W Beamish
    Abstract:

    The impact of knowledge transfer on Foreign Subsidiary performance has been a major focus of research on knowledge management in multinational enterprises (MNEs). By integrating the knowledge-based view and the expatriation literature, this study examines the relationship between a multinational firm's knowledge (i.e. marketing and technological knowledge), its use of expatriates, and the performance of its Foreign subsidiaries. We conceptualize that expatriates play a contingent role in facilitating the transfer and redeployment of a parent firm's knowledge to its Subsidiary, depending on the location specificity of the organizational knowledge being transferred and the time of transfer. Our analysis of 1660 Foreign subsidiaries of Japanese firms over a 15-year period indicates that the number of expatriates relative to the total number of Subsidiary employees (1) strengthened the effect of a parent firm's technological knowledge (with low location specificity) on Subsidiary performance in the short term, but (2) weakened the impact of the parent firm's marketing knowledge (with high location specificity) on Subsidiary performance in the long term. We also found that the expatriates' influence on knowledge transfer eventually disappeared. The implications for knowledge transfer research and the expatriate management literature are discussed.

  • the diminishing effect of cultural distance on Subsidiary control
    Journal of International Management, 2008
    Co-Authors: Timothy J. Wilkinson, Lance Eliot Brouthers, George Z Peng, Paul W Beamish
    Abstract:

    This paper explores the diminishing influence of national cultural distance on two Subsidiary control issues, expatriate staffing and parent company ownership level of the Foreign Subsidiary. Previous studies have produced conflicting findings: one stream of research argues that when cultural distance is greater firms increase their level of control; while the other stream suggests that greater cultural distance is associated with a loosening of control. To reconcile these discrepant outcomes we hypothesize and find that Subsidiary age moderates the effect of cultural distance on expatriate staffing and ownership. Cultural distance has a significantly greater impact on Subsidiary control mechanisms for newer subsidiaries than for older subsidiaries. Implications for future research are discussed.

David M P Samuel - One of the best experts on this subject based on the ideXlab platform.

  • repatriation taxes internal agency conflicts and Subsidiary level investment efficiency
    The Accounting Review, 2021
    Co-Authors: Harald Amberger, Kevin Markle, David M P Samuel
    Abstract:

    Using a global sample of multinational corporations (MNCs) and their Foreign subsidiaries, we find that repatriation taxes impair Subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the Foreign Subsidiary being the driver, we find that this effect is prevalent in subsidiaries with high information asymmetry, in subsidiaries that are weakly monitored, and subsidiaries of cash-rich MNCs. Natural experiments in the UK and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases Subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical evidence to inform expectations for the effects of a recent change to the U.S. international tax law which eliminated repatriation taxes from most of the future Foreign earnings of U.S. MNCs.

  • repatriation taxes internal agency conflicts and Subsidiary level investment efficiency
    Social Science Research Network, 2020
    Co-Authors: Harald Amberger, Kevin Markle, David M P Samuel
    Abstract:

    Using a global sample of multinational corporations (MNCs) and their Foreign subsidiaries, we find that repatriation taxes impair Subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the Foreign Subsidiary being the driver, we show that this effect is concentrated in subsidiaries with high information asymmetry and in subsidiaries that are weakly monitored. Quasi-natural experiments in the UK and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases Subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical evidence to inform expectations for the effects of a recent change to the U.S. international tax law that eliminated repatriation taxes from most of the future Foreign earnings of U.S. MNCs.

Harald Amberger - One of the best experts on this subject based on the ideXlab platform.

  • repatriation taxes internal agency conflicts and Subsidiary level investment efficiency
    The Accounting Review, 2021
    Co-Authors: Harald Amberger, Kevin Markle, David M P Samuel
    Abstract:

    Using a global sample of multinational corporations (MNCs) and their Foreign subsidiaries, we find that repatriation taxes impair Subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the Foreign Subsidiary being the driver, we find that this effect is prevalent in subsidiaries with high information asymmetry, in subsidiaries that are weakly monitored, and subsidiaries of cash-rich MNCs. Natural experiments in the UK and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases Subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical evidence to inform expectations for the effects of a recent change to the U.S. international tax law which eliminated repatriation taxes from most of the future Foreign earnings of U.S. MNCs.

  • repatriation taxes internal agency conflicts and Subsidiary level investment efficiency
    Social Science Research Network, 2020
    Co-Authors: Harald Amberger, Kevin Markle, David M P Samuel
    Abstract:

    Using a global sample of multinational corporations (MNCs) and their Foreign subsidiaries, we find that repatriation taxes impair Subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the Foreign Subsidiary being the driver, we show that this effect is concentrated in subsidiaries with high information asymmetry and in subsidiaries that are weakly monitored. Quasi-natural experiments in the UK and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases Subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical evidence to inform expectations for the effects of a recent change to the U.S. international tax law that eliminated repatriation taxes from most of the future Foreign earnings of U.S. MNCs.

Sharon Odonnell - One of the best experts on this subject based on the ideXlab platform.

  • managing Foreign subsidiaries agents of headquarters or an interdependent network
    Strategic Management Journal, 2000
    Co-Authors: Sharon Odonnell
    Abstract:

    In this study, two different theoretical perspectives are used to develop sets of hypotheses regarding the mechanisms used to manage Foreign subsidiaries of multinational corporations. First, agency theory serves as the basis for a model that predicts the use of monitoring mechanisms and incentive compensation. Then, it is argued that these mechanisms are insufficient for managing subsidiaries characterized by high levels of intra-firm international interdependence, the management of which is critical to many of today's complex global firms. A second set of hypotheses is argued, linking international interdependence to several social control mechanisms. Primary and secondary data from U.S. based multinational corporations were used to test both sets of hypotheses. The results indicate that agency theory, although a useful foundation for studies of control within MNCs, is limited in its ability to explain fully the phenomenon of Foreign Subsidiary control, however, the model based on intra-firm interdependence had much greater predictive ability. Copyright © 2000 John Wiley & Sons, Ltd.

  • Foreign Subsidiary compensation strategy an agency theory perspective
    Academy of Management Journal, 1996
    Co-Authors: Kendall Roth, Sharon Odonnell
    Abstract:

    This study extends agency theory to explain the design of compensation strategy in Foreign subsidiaries competing within global industries. Results from 100 subsidiaries in five countries indicate ...

Shige Makino - One of the best experts on this subject based on the ideXlab platform.

  • multinational firm knowledge use of expatriates and Foreign Subsidiary performance
    Journal of Management Studies, 2010
    Co-Authors: Yulin Fang, Guoliang Frank Jiang, Shige Makino, Paul W Beamish
    Abstract:

    The impact of knowledge transfer on Foreign Subsidiary performance has been a major focus of research on knowledge management in multinational enterprises (MNEs). By integrating the knowledge-based view and the expatriation literature, this study examines the relationship between a multinational firm's knowledge (i.e. marketing and technological knowledge), its use of expatriates, and the performance of its Foreign subsidiaries. We conceptualize that expatriates play a contingent role in facilitating the transfer and redeployment of a parent firm's knowledge to its Subsidiary, depending on the location specificity of the organizational knowledge being transferred and the time of transfer. Our analysis of 1660 Foreign subsidiaries of Japanese firms over a 15-year period indicates that the number of expatriates relative to the total number of Subsidiary employees (1) strengthened the effect of a parent firm's technological knowledge (with low location specificity) on Subsidiary performance in the short term, but (2) weakened the impact of the parent firm's marketing knowledge (with high location specificity) on Subsidiary performance in the long term. We also found that the expatriates' influence on knowledge transfer eventually disappeared. The implications for knowledge transfer research and the expatriate management literature are discussed.

  • Legitimacy and multi-level institutional environments: implications for Foreign Subsidiary ownership structure
    Journal of International Business Studies, 2007
    Co-Authors: Christine M Chan, Shige Makino
    Abstract:

    In this study, we examine from an institutional perspective the legitimacy rationale behind the choice of Subsidiary ownership structure among multinational corporations (MNCs). We suggest that, when under a strong pressure to conform at the host country and local industry levels of their institutional environment, MNCs are likely to take a lower ownership stake in exchange for external legitimacy in the host country or local industry that their Foreign subsidiaries are entering. We also suggest that MNCs are likely to take a higher ownership stake in response to strong internal pressure to sustain their internal legitimacy at the corporate level of their institutional environment. We also propose that MNCs are more likely to exchange ownership for legitimacy in local industries than in host countries, and in local markets with a high level of political instability than in those with a low level of political instability. These propositions are generally supported by our analysis of 4451 subsidiaries established by 898 Japanese MNCs that operated in 39 countries across 52 industries (two-digit SIC) between 1988 and 1999.

  • legitimacy and multi level institutional environments implications for Foreign Subsidiary ownership structure
    Journal of International Business Studies, 2007
    Co-Authors: Christine M Chan, Shige Makino
    Abstract:

    In this study, we examine from an institutional perspective the legitimacy rationale behind the choice of Subsidiary ownership structure among multinational corporations (MNCs). We suggest that, when under a strong pressure to conform at the host country and local industry levels of their institutional environment, MNCs are likely to take a lower ownership stake in exchange for external legitimacy in the host country or local industry that their Foreign subsidiaries are entering. We also suggest that MNCs are likely to take a higher ownership stake in response to strong internal pressure to sustain their internal legitimacy at the corporate level of their institutional environment. We also propose that MNCs are more likely to exchange ownership for legitimacy in local industries than in host countries, and in local markets with a high level of political instability than in those with a low level of political instability. These propositions are generally supported by our analysis of 4451 subsidiaries established by 898 Japanese MNCs that operated in 39 countries across 52 industries (two-digit SIC) between 1988 and 1999. Journal of International Business Studies (2007) 38, 621–638. doi:10.1057/palgrave.jibs.8400283