Foreign Investment

Working Paper

01 October 2005

'Lending by Example': Direct and Indirect Effects of Foreign Banks in Emerging Markets

Using a novel dataset that allows us to trace the bank relationships of a sample of mostly unlisted firms, we explore which borrowers are able to benefit from foreign bank presence in emerging markets. Our results suggest that the limits...

Mariassunta Giannetti | Steven Ongena
19 February 2020

Party Building or Noisy Signaling? The Contours of Political Conformity in Chinese Corporate Governance

We examine responses by Chinese firms to a “party-building” policy launched by the Chinese Communist Party (CCP) in 2015 to reform China’s state-owned enterprises (SOEs). The policy requires SOEs to follow a model template of...

Lauren Yu-Hsin Lin | Curtis J. Milhaupt
01 November 2009

Does It Pay to Go Global in the Boardroom? The Effect of Foreign Directors on Corporate Governance and Performance

We examine the benefits and costs associated with foreign independent directors (FIDs) at U.S. corporations. We find that firms with FIDs make better cross-border acquisitions when the targets are from the home regions of FIDs....

Ronald Masulis | Cong Wang | Fei Xie
28 January 2019

Cross-Border Venture Capital Investments: What Is the Role of Public Policy?

Cross-border venture capital (VC) investments play an important role in the scaling up of high-growth companies. However, policymakers worry that foreign VC investments transfer the majority of economic activity to the investor...

Wendy A. Bradley | Gilles Duruflé | Thomas Hellmann | Karen E. Wilson
04 June 2021

Boosting International Investment: The Role of Expert Assessments of Corporate Governance

Global investors often demand independent assessments of firms’ governance mechanisms. However, the supply of such evaluations is subject to two important limitations: assessment error and lack of coverage in certain regions....

Pietro Bonetti | Gaizka Ormazabal
01 July 2005

Financial Integration and Firm Performance: Evidence from Foreign Bank Entry in Emerging Markets

While the positive growth effects of financial integration are extensively documented, little is known of its impact on small and young firms. This paper aims to fill this void relying on a panel of 60,000 firm-year observations on...

Mariassunta Giannetti | Steven Ongena