US companies in transition economies: wealth effects from expansion between 1987 and 1999

• 成果类型: Article
• 署名作者: Wooster, RB
• 署名单位: California State University System; California State University Sacramento
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400187
• 发表日期: 2006
• 页码: 179-195
• 关键词: foreign direct investment; transition economies; event study

摘要

This study uses a unique sample to evaluate changes in shareholder wealth from announcements of expansion by US firms into 18 transition economies, through four entry modes, from 1987 to 1999. On average, expansion in transition economies is associated with significant positive wealth effects. Results show that value creation is most significantly associated with expansion through less risky entry modes into host countries that are in the more advanced stages of market liberalization and structural reform. Sample firms with lower profitability also experience significantly higher abnormal returns, while significant value creation documented for firms entering transition economies in 1989, 1990, and 1992 suggests first-mover advantages.