Three essays on the effects of foreign direct investment on the host-country companies: An analysis in the private setting
This thesis investigates how the presence of foreign controlling shareholders relates to the performance and financial reporting quality of private subsidiaries. We analyze unique, hand-collected data consisting of a sample of more than 2,000 private Spanish companies controlled by either a local or...
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| Tipo de recurso: | tesis doctoral |
| Estado: | Versión publicada |
| Fecha de publicación: | 2017 |
| País: | España |
| Institución: | CBUC, CESCA |
| Repositorio: | TDR. Tesis Doctorales en Red |
| OAI Identifier: | oai:www.tdx.cat:10803/424846 |
| Acceso en línea: | http://hdl.handle.net/10803/424846 http://dx.doi.org/10.6035/14012.2017.335557 http://mediaserver.csuc.cat/tdx/documents/80/91/05/80910572736703771608439857125541049164/ |
| Access Level: | acceso abierto |
| Palabra clave: | Foreign ownership Private firms Subsidiaries Earnings management Audit opinion Financial performance Negocis, administració i dret 334 336 |
| Sumario: | This thesis investigates how the presence of foreign controlling shareholders relates to the performance and financial reporting quality of private subsidiaries. We analyze unique, hand-collected data consisting of a sample of more than 2,000 private Spanish companies controlled by either a local or a foreign group during the period 1997-2013. Overall, results suggest a negative effect of foreign direct investment on the host-country companies. In particular, foreign ownership is associated with a sales advantage, but the higher personnel costs make foreign group subsidiaries less profitable than their locally-owned counterparts. As far as accounting quality is concerned, foreign-owned companies are also inferior to those owned by local groups, since we find a higher prevalence of earnings management and a higher likelihood of receiving modified audit reports for lack of transparency in subsidiaries of foreign groups. In sum, foreign control does not enhance firm profitability nor financial reporting quality, but fosters opacity. |
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