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Lean against the wind: The moderation effect of foreign investments during the economic recession in Russia

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  • Bykova, Anna
  • Jardon, Carlos M.

Abstract

Using a unique panel database of more than 1000 Russian public companies covering the period from 2004 to 2014, this study uses quantile regression techniques to investigate the moderating effects of foreign partners on company performance during the economic recession. The empirical findings are robust and confirm the positive impact of foreign ownership on limiting the negative effect of the recession on company performance. The strength of the impact depends on the level of firms’ financial results. The outcomes have implications for company investment policy. The evidence supports government policy towards encouraging foreign entry liberalization in emerging markets during periods of turbulence.

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  • Bykova, Anna & Jardon, Carlos M., 2017. "Lean against the wind: The moderation effect of foreign investments during the economic recession in Russia," Journal of Economics and Business, Elsevier, vol. 93(C), pages 1-14.
    • Handle: RePEc:eee:jebusi:v:93:y:2017:i:c:p:1-14
    DOI: 10.1016/j.jeconbus.2017.07.001
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    2. Zhang, Jianhong, 2022. "Liability of emergingness and EMNEs’ cross-border acquisition completion: A legitimacy perspective," International Business Review, Elsevier, vol. 31(2).

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    More about this item

    Keywords

    Foreign- and domestic-invested companies; Corporate performance; Emerging markets; Economic recession; Quantile regression; Moderation effect;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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