This article investigates the reasons underlying the high propensity of UK firms to directly invest in the United States via acquisition and merger. Using a binomial logit model, this study analyses data from 142 firms in five industrial sectors over the period 1984-1994. Together, these sectors account for more than 80% of UK foreign direct investment (FDI) in the sample period. The results highlight the role of diversification in explaining this behaviour. In contrast, the relative lack of evidence to support the role of exchange rates and leverage in influencing the decision to merge/acquire continues to fuel division as to the role of capital market imperfections in determining mode of entry.Foreign Direct Investment, Mode of Entry,
The rise in the number of self-employed workers in the UK has been paralleled by increasing concern that the use of such `peripheral' labour may result in the operation of a dual-labour market acting to reinforce segregation between `good' core employment, characterised by higher pay, fringe benefits and job security, and `bad' peripheral employment with adverse characteristics. In contrast, using evidence gained from a survey of workers in the UK construction industry, this paper shows that, for any occupation/level of skill, there are discrete advantages and disadvantages in both direct and self-employment. It is, therefore, argued that worker preference for a particular mode of employment is the key criterion which determines the case for either relative advantage or disadvantage. In particular, the evidence shows that the large majorities of both direct and self-employed workers who prefer their existing mode of employment undermines dualist conclusions of relative disadvantage arising from self-employment per se.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.