Corruption, Geopolitical Risk, and the Post-Investment Environment for Subsidiary MNEs: What Do Firms Really Fear After the Initial Investment is Made?

This is an interesting piece brought to me by my European analysts and published in the Journal of International Business Studies.

The paper looks at the impact of corruption and uncertainty on post-entry investment of MNE subsidiaries (i.e., the subsequent and ongoing resource commitments made by an MNE in a host country after its initial market entry).

Employing a variety methods and sources – including our ICRG data and a sample of 13 private firms over the 2001-2013 period – it was found that corruption does not have an effect on the investment of MNE subsidiaries. Ongoing resource commitments are, however,  affected by uncertainties related to financing, and the judiciary.

Have a look if time permits: (https://www.jstor.org/stable/48686839?searchText=ICRG%20emerging%20markets&searchUri=%2Faction%2FdoBasicSearch%3FQuery%3DICRG%2Bemerging%2Bmarkets%26so%3Dnew&ab_segments=0%2Fspellcheck_basic_search%2Fcontrol&refreqid=fastly-default%3A8f98ebf07712b09968297b020caebd38)

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