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Corporate performance: does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal

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Author Info
Natália Barbosa () (NIMA, University of Minho)
Helen Louri () (Athens University of Economics and Business)

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Abstract

The paper investigates whether multinational corporations (MNCs) operating in Portugal and Greece perform differently than domestic firms using two samples. The first contains 2651 and the second 523 firms operating in Greece in 1997 and Portugal in 1992 respectively. Departures from normality of firms' profitability motivated the adoption of the robust technique of quantile regression. The estimation results suggest that ownership ties do not make a significant difference with respect to performance of firms operating in Portugal. Results were similar for firms operating in Greece and only when firms in the upper quantiles of gross profits were compared, MNCs were found to significantly perform better than domestic firms. It is probably because MNCs have to compensate for their liability of foreigness that in spite of their technological advantages they cannot persistently outperform their domestic rivals.

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Publisher Info
Paper provided by Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho in its series Working Papers with number 26.

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Length: 22 pages
Date of creation: Oct 2003
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Handle: RePEc:nim:nimawp:26

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Postal: Universidade do Minho, Escola de Economia e Gestão Gualtar, 4710-057 Braga,Portugal
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Related research
Keywords: multinational corporations profitability manufacturing industry Quantile Regression

Other versions of this item:

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Halkos, George & Tzeremes, Nickolaos, 2005. "Internationalization Strategies and Productivity: Evidence from Foreign Owned Companies Operating in the Greek Manufacturing Sector," MPRA Paper 2857, University Library of Munich, Germany. [Downloadable!]
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