Determinants of Ownership Structure: A Comparative Analysis of Multinational Firms' Preferences in Greece and Portugal

33 Pages Posted: 4 May 2001

See all articles by Natália Barbosa

Natália Barbosa

University of Minho - School of Economics and Management

Helen Louri

Athens University of Economics and Business - Department of Economics

Date Written: January 2000

Abstract

The aim of the paper is to examine the determinants of the ownership choice (full, majority, minority) of manufacturing MNFs established in Greece and Portugal in the 1990s. FDI observations in the two countries underline differences between them in terms of relative FDI size and industry as well as ownership preferences. Transaction cost arguments together with bargaining power considerations provide the theoretical basis for the econometric model which uses multinomial logit analysis applied on 363 and 469 MNFs in Greece and Portugal. The estimations contribute to a better understanding of such differences, showing that location and industry characteristics through their effect on risk-adjusted expected profits influence ownership decisions.

Keywords: Multinationals, ownership structure

JEL Classification: F23, L22

Suggested Citation

Barbosa, Natália and Louri, Eleni (Helen), Determinants of Ownership Structure: A Comparative Analysis of Multinational Firms' Preferences in Greece and Portugal (January 2000). CEPR Discussion Paper No. 2347. Available at SSRN: https://ssrn.com/abstract=268855

Natália Barbosa (Contact Author)

University of Minho - School of Economics and Management ( email )

School of Economics and Management
Gualtar
4710-057 Braga
Portugal
+351253604535 (Phone)

Eleni (Helen) Louri

Athens University of Economics and Business - Department of Economics ( email )

76 Patission Street
GR-10434 Athens
Greece
+30 1 8203122 (Phone)
+30 1 8238249 (Fax)

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