An Empirical Analysis of CFIUS: Examining Foreign Investment Regulation in the United States

29 Pages Posted: 1 Jul 2013 Last revised: 22 Nov 2013

See all articles by Paul Connell

Paul Connell

Columbia University, Graduate School of Arts and Sciences, Department of Economics

Tian Huang

Yale University - Law School

Date Written: June 30, 2013

Abstract

The Committee on Foreign Investment in the United States (CFIUS) examines foreign proposed transactions to garner control of American entities and advises on national security risks through a confidential review process. Previous scholarship on CFIUS has concentrated on specific events and legislative amendments to the process. This Note, through aggregating publicly available sources of information regarding CFIUS reviews, produces the first comprehensive empirical analysis of the process. Using event studies, we show that CFIUS actions have resulted in multi-billion dollar wealth transfers to American companies. Our regression analysis of publicly available data indicates that outcomes of CFIUS reviews are best explained by factors relating to national security concerns.

Keywords: CFIUS, Committee on Foreign Investment in the United States, Foreign Investment, Event Study

JEL Classification: K20, K40, K00, K23, K33, K42

Suggested Citation

Connell, Paul and Huang, Tian, An Empirical Analysis of CFIUS: Examining Foreign Investment Regulation in the United States (June 30, 2013). Yale Journal of International Law, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2287503

Paul Connell (Contact Author)

Columbia University, Graduate School of Arts and Sciences, Department of Economics ( email )

New York, NY
United States

Tian Huang

Yale University - Law School ( email )

127 Wall St.
New Haven, CT 06511
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
215
Abstract Views
1,583
Rank
267,650
PlumX Metrics