Host country corporate income tax rate and foreign subsidiary survival

Farah, Bassam; Elias, Rida; Chakravarty, Dwarka; Beamish, Paul W.

doi:10.1016/j.jwb.2020.101186

Cited by 22 publications

(6 citation statements)

References 84 publications

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“…(3) The literature on the factors affecting subsidiary survival primarily focuses on MNCs in developed countries. Examples include studies based on Japanese MNCs by Delios and Beamish (1999) and Farah et al (2021), as well as research on Korean MNCs by Gaur et al (2019). An extensive literature search by the author revealed few current studies on EMNCs.…”

Section: Introductionmentioning

confidence: 99%

Migration networks and subsidiary survival of EMNCs: The mediating effect of entry mode

et al. 2022

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In this study, the overseas subsidiaries of A‐share listed Chinese companies that engaged in overseas ventures between 2007 and 2018 are used as samples. Social network theory is adopted in combination with the Cox proportional hazards model to examine the mechanism of how migration networks affect subsidiary survival of EMNCs. The results reveal that migration networks effectively promote the survival of the overseas subsidiaries owned by EMNCs; entry mode mediates the relationship between migration networks and the survival of the overseas subsidiaries in regions with abundant migration networks; the overseas subsidiaries are inclined to be sole ventures, which promotes their survival.

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Section: Introductionmentioning

confidence: 99%

Migration networks and subsidiary survival of EMNCs: The mediating effect of entry mode

et al. 2022

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“…The decision to locate or to continue the activities of a subsidiary of a foreign company depends on the degree of income taxation in the host country. Also, the level at which the company invests in that subsidiary depends on these taxes (Farah et al, 2021). At the same time, migration influences the labor force in a country (Negescu Oancea, et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Aspects of The Evolution of Enterprises in Member States of The European Union

Angheluță

Bodislav

Popescu

et al. 2021

EJSD

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A solid industrial base positively influences society as a whole. Business development is favored by the degree to which companies are active in the market. The article presents an analysis of employment in companies active in the Member States of the European Union. The evolution of the establishment of active enterprises according to their branches of activity is also addressed. Openness to local markets can lead to successful business activities. Cooperation between different companies can also be facilitated by new technologies. From the point of view of mobility, employment in foreign affiliates of domestic enterprises is another subdomain analyzed in the article. The way in which companies approach the field of expenditure can influence their activity. Thus, by increasing technological capacities and promoting innovation, technological development measures lead to the development of enterprises. The article presents an analysis of the way in which expenditure is shared at the level of enterprises in the Member States of the European Union.

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“…PCNs also tend to be trustworthy and hardworking during their tenure in foreign subsidiaries to establish their future status with the parent firm after their return to their home country (Kang and Shen, 2016). However, despite these notable benefits, sending PCNs to foreign subsidiaries is traditionally more expensive than hiring host country nationals (HCNs) (Farah et al , 2021; Tan and Mahoney, 2003).…”

Section: Introductionmentioning

confidence: 99%

Productivity gap and expatriate utilization

Lee

Whang

Nahm

et al. 2022

MBR

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Purpose This paper aims to investigate how the gap between a multinational enterprise’s (MNE) productivity and that of its competitor determines the utilization of expatriate managers in its foreign subsidiaries. Design/methodology/approach The authors first develop a formal analytical model where expatriate managers are relatively more reliable and expensive while local managers are prone to job-hopping. The authors then test the predictions of the analytical model using subsidiary-level data of Korean MNEs. Findings The findings show a positive relationship between the productivity gap and the share of expatriate managers in a foreign subsidiary. The empirical findings also show that the job position (middle versus top managers) is another key determinant of the utilization of expatriate managers. Originality/value The results of this paper are consistent with the literature that finds that MNEs choose a governance structure that minimizes the hazard of opportunism in their subsidiaries, yet the paper reveals a novel aspect of the determinants of expatriate utilization.

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Host country corporate income tax rate and foreign subsidiary survival

Cited by 22 publications

References 84 publications

Migration networks and subsidiary survival of EMNCs: The mediating effect of entry mode

Migration networks and subsidiary survival of EMNCs: The mediating effect of entry mode

Aspects of The Evolution of Enterprises in Member States of The European Union

Productivity gap and expatriate utilization

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