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Corporate Governance and International Location Decisions of Multinational Enterprises

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  • Lammertjan Dam
  • Bert Scholtens
  • Elmer Sterken

Abstract

This paper analyses international location decisions of corporations based on corporate governance considerations. Using firm level data on 540 Multinational Enterprises (MNEs) with 44,149 subsidiaries in 188 countries, we test whether firms with relatively good governance standards are more often located in countries with a weak governance system. We find empirical support for this hypothesis, especially for those corporations present in low‐income countries.

Suggested Citation

  • Lammertjan Dam & Bert Scholtens & Elmer Sterken, 2007. "Corporate Governance and International Location Decisions of Multinational Enterprises," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1330-1347, November.
    • Handle: RePEc:bla:corgov:v:15:y:2007:i:6:p:1330-1347
    DOI: 10.1111/j.1467-8683.2007.00649.x
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    Cited by:

    1. Lammertjan Dam & Bert Scholtens, 2013. "Ownership Concentration and CSR Policy of European Multinational Enterprises," Journal of Business Ethics, Springer, vol. 118(1), pages 117-126, November.
    2. Andre Carvalhal, 2014. "Do internationalized companies have better governance? Lessons from Brazil," Applied Financial Economics, Taylor & Francis Journals, vol. 24(10), pages 679-690, May.
    3. Alessandro Zattoni & Emmanouil Dedoulis & Stergios Leventis & Hans Van Ees, 2020. "Corporate governance and institutions—A review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 465-487, November.
    4. Roger Strange & Igor Filatotchev & Yung-chih Lien & Jenifer Piesse, 2009. "Insider Control and the FDI Location Decision," Management International Review, Springer, vol. 49(4), pages 433-454, September.

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