Abstract

http://ssrn.com/abstract=732524
 
 

References (67)



 
 

Citations (7)



 


 



Investor Protection and Real Investment by U.S. Multinationals


Eric K. Kelley


University of Tennessee; University of Arizona

Tracie Woidtke


University of Tennessee, Knoxville - College of Business Administration


Journal of Financial and Quantitative Analysis, Forthcoming

Abstract:     
In spite of the growing research concerning investor protection, the relation between investor protection and real investment by foreign multinationals is largely unexplored. Recognizing this relation, however, is especially important in light of the surge in cross-border activity in recent decades and the potential impact cross-border investment can have on a country's economic development. We find that U.S. multinational foreign investment is significantly greater both when shareholder protection is poor and when creditor protection is poor. Consistent with existing literature, our results suggest that U.S. firms have greater comparative advantages when local firms in poor investor protection countries either (1) invest sub-optimally due to agency problems or (2) have constrained access to debt capital. The increased investment by U.S. multinationals in poor investor protection countries is of particular interest, because it suggests an important way in which adverse outcomes related to poor investor protection may be mitigated.

Number of Pages in PDF File: 53

Keywords: Investor protection, corporate governance, multinationals, cross-border investment

JEL Classification: G30, F30, F40

Accepted Paper Series


Download This Paper

Date posted: June 1, 2005  

Suggested Citation

Kelley, Eric K. and Woidtke, Tracie, Investor Protection and Real Investment by U.S. Multinationals. Journal of Financial and Quantitative Analysis, Forthcoming. Available at SSRN: http://ssrn.com/abstract=732524

Contact Information

Eric K. Kelley
University of Tennessee ( email )
Knoxville, TN 37996
United States
University of Arizona ( email )
McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States
520-621-5589 (Phone)
Tracie Woidtke (Contact Author)
University of Tennessee, Knoxville - College of Business Administration ( email )
Knoxville, TN 37996
United States
865-974-1718 (Phone)
865-974-1716 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 2,454
Downloads: 425
Download Rank: 37,419
References:  67
Citations:  7

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.219 seconds