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Host country's governance and the size of foreign investors

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  • Lskavyan, Vahe
  • Spatareanu, Mariana

Abstract

We find that smaller foreign investors are more sensitive to the quality of host country's governance than larger investors. This may be the case as smaller foreign firms have less bargaining power and are more sensitive to uncertainty and risk.

Suggested Citation

  • Lskavyan, Vahe & Spatareanu, Mariana, 2008. "Host country's governance and the size of foreign investors," Economics Letters, Elsevier, vol. 100(2), pages 258-261, August.
    • Handle: RePEc:eee:ecolet:v:100:y:2008:i:2:p:258-261
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    2. Julien Gooris & Carine Peeters, 2012. "Home-Host Country Distance and Governance Choices in Service Offshoring," Working Papers ECARES ECARES 2012-007, ULB -- Universite Libre de Bruxelles.
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    6. Alina Taran & Marilena Mironiuc, 2018. "Influence Of Local Versus Foreign Corporations, As Shareholders, On Financial Performance Of Romanian Listed Companies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 21, pages 97-116, June.

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