Resource nationalism meets the market: Political risk and the value of petroleum reserves

Click, Reid W.; Weiner, Robert J.

doi:10.1057/jibs.2009.90

Cited by 90 publications

(42 citation statements)

References 47 publications

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“…To measure corruption, we referenced the PRS Group's International Country Risk Guide (ICRG), which contains a measure of corruption in political systems. The ICRG's indices have been used widely in management studies (e.g., Chan, Isobe, & Makino, 2008;Click & Weiner, 2010;Oh & Oetzel, 2011). The original index ranged from 0 (highest corruption) to 6 (lowest corruption).…”

Section: Independent Variablesmentioning

confidence: 99%

The impact of family ownership on establishment and ownership modes in foreign direct investment: The moderating role of corruption in host countries

Yamanoi

Asaba

2018

Global Strategy Journal

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Research Summary: In this study, we adopt a socioemotional wealth perspective to examine the influence of family ownership on foreign direct investment. When establishing foreign subsidiaries, firms with greater degrees of family ownership are more likely to engage in greenfield investment and full equity ownership in order to maintain family owners’ socioemotional wealth. Additionally, these relationships are more pronounced in countries with higher levels of corruption. In corrupt countries, greater control over foreign subsidiaries is necessary to restrict their corrupt behaviors, which can seriously damage the firm’s socioemotional wealth and destroy the reputation of the family owners. By using a dataset of foreign market entries by Japanese listed firms in the electronic machinery industry, we find general support for our hypotheses. Managerial Summary: We find evidence that Japanese listed electronic machinery manufacturers with larger family ownership are more likely to choose greenfield investment and full ownership when entering foreign countries. This result suggests that family owners prefer to maintain strong control on local subsidiaries, possibly for preserving their socioemotional wealth. Additionally, this tendency of family firms’ regarding the choice of greenfield investment is stronger when they enter countries with higher levels of corruption. Managers and investors of family firms might need to pay attention to family owners’ entry mode choices, which could be incentivized excessively for the preservation of socioemotional wealth, possibly at the expense of economic wealth.

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Section: Independent Variablesmentioning

confidence: 99%

The impact of family ownership on establishment and ownership modes in foreign direct investment: The moderating role of corruption in host countries

Yamanoi

Asaba

2018

Global Strategy Journal

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“…Our database has been used in strategy research(Click & Weiner, 2010;Jandhyala & Weiner, 2014).11 The small number of deals per firm reflects the major, infrequent nature of reserve acquisitions. Our results below do not depend on a few firms; the top 10 by deal frequency account for less than 25% of the sample.A.P.…”

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confidence: 99%

Multinational investment and voluntary disclosure: Project-level evidence from the petroleum industry

Cannizzaro

Weiner

2015

Accounting, Organizations and Society

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“…The literature has highlighted that two types of regulatory force exert influence or authority over the way in which emerging economy firms locate their resources for FDI activities. The first is political risk [43] [44] and the other is economic freedom [42] [45]. This study intends to examine how these two forces in the institutional setting of both host and home countries interact with a firm's resource-seeking intent to influence location choice of outward FDI by EMNEs.…”

Section: Institutional Perspectivementioning

confidence: 99%

The Effects of Institutional Difference and Resource Seeking Intent on Location Choice of Chinese Outward FDI

Kang¹,

Li²

2018

TEL

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This study seeks to explain how differences in political risk and economic freedom between host and home countries interact with investing firms' resource-seeking intent to influence the firms' outward foreign direct investment (FDI) location choice. Using panel data covering Chinese outward FDI in 62 host countries during the period of 2003-2014, we performed panel data regression analysis. The results show that when firms' resource seeking intention is high, the FDI location choice is negatively associated with the differences in political risk, but positively associated with the differences in economic freedom between China and the host countries. The results also show that there is a substituting effect between political risk and economic freedom in their interactions with resource-seeking intent to influence FDI location choice. The findings suggest that the Chinese firms' outward FDI location choice is a result of the interplay and the fit between the firms' external legitimacy in the host countries and the firms' internal legitimacy within the multinational organization.

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Resource nationalism meets the market: Political risk and the value of petroleum reserves

Cited by 90 publications

References 47 publications

The impact of family ownership on establishment and ownership modes in foreign direct investment: The moderating role of corruption in host countries

The impact of family ownership on establishment and ownership modes in foreign direct investment: The moderating role of corruption in host countries

Multinational investment and voluntary disclosure: Project-level evidence from the petroleum industry

The Effects of Institutional Difference and Resource Seeking Intent on Location Choice of Chinese Outward FDI

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