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Corruption Distance, Anti-corruption Laws and International Ownership Strategies in Russia

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  • Karhunen, Päivi
  • Ledyaeva, Svetlana
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    Abstract

    Using a unique dataset of 1341 firms with foreign ownership registered in Russia, this paper examines how foreign ownership strategies in Russia are influenced by the corruption distance between the home country and Russia. It also examines how anti-corruption regulation in the home country affects the modal choice. Based on transaction cost and resource-based theories, the modal choice is viewed as a trade-off between the benefits and costs of having a local partner. In the case of Russia, the benefits were found to exceed the costs, as corruption distance and anti-corruption legislation in force in the home country are positively related to shared ownership.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 18 (2012)
    Issue (Month): 2 ()
    Pages: 196-208

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    Handle: RePEc:eee:intman:v:18:y:2012:i:2:p:196-208

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    Related research

    Keywords: Corruption distance; Entry strategies; Anti-corruption regulation; Emerging economies; Russia; Transaction cost theory;

    References

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    Cited by:
    1. Svetlana Ledyaeva & Päivi Karhunen & John Whalley, 2013. "If Foreign Investment Is not Foreign: Round-Trip Versus Genuine Foreign Investment in Russia," Working Papers 2013-05, CEPII research center.
    2. Li, Dan & Miller, Stewart R. & Eden, Lorraine & Hitt, Michael A., 2012. "The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries," Journal of International Management, Elsevier, vol. 18(4), pages 305-321.
    3. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, vol. 20(2), pages 188-200.

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