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Corporate Governance and International Location Decisions of Multinational Enterprises

Author

Listed:
  • Lammertjan Dam
  • Bert Scholtens

    (University of Groningen)

  • Elmer Sterken

    (University of Groningen)

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. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

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
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    References listed on IDEAS

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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. repec:spr:manint:v:49:y:2009:i:4:d:10.1007_s11575-009-0003-x is not listed on IDEAS

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