Chinese MNE acquisition of unrelated foreign businesses: The role of diversified business group affiliation, private ownership and strategic asset seeking

FDI motives and the use of tax havens: Evidence from South Korea

“…However, as Bhaumik et al (2016) demonstrate, in order to gain from technology-seeking FDI, the MNE must have, not merely a set of CSAs, but also FSAs. Shi et al (2021) extend this argument, considering the nature of strategic asset seeking. They argue that while in the first instance strategic asset seeking may be concerned with augmenting existing capability, they also argue that countries with a concentration of business groups may seek to engage in diversified knowledge or technology sourcing FDI.…”

“…This is because, in terms of the framework discussed above, efficiency-seeking FDI may well encourage further FSAs at home, but this is an indirect process, as low value activities are moved abroad, hence it may free up resources at home. Sutherland et al (2021) explore this in the context of the repatriation of assets via strategic asset seeking, but one can make a similar argument regarding efficiency seeking FDI. As Hennart (2012) and Petersen and Seifert (2014) outline, EMNEs may enjoy a degree of protection at home not enjoyed by Western MNEs, so the repatriation of resources from efficiency seeking FDI will generate quick returns.…”

Corporate diversification and debt financing: Do family shareholders protect their control rights?

“…Kochhar (1996) and Kochhar et al (1998) were among the earliest works to propose that the factor that determined the firms' leverage decision was the corporate strategies undertaken by managers, though Agarwal et al (2022) argued that both the managers' strategies and the external market forces were the ones that strongly determined the leverage decision, which was explained in three perspectives based on the literature on diversification and debt, namely the co‐insurance effect, agency theory and organisational economics. According to Shi et al (2021), diversified firms generally enjoyed substantial cash flows that provided cross‐divisional co‐insurance benefits by lowering the financial pressure and bankruptcy risks. This has promoted debt borrowing among firms in the diversified business group as the risk of debt can be reduced through diversification activities (Benito‐Osorio et al, 2020).…”

Perilaku Ceo Dan Penurunan Nilai Goodwill: Studi Keperilakuan Kepercayaan Diri Berlebih

“…Sentimen investor dapat menjadi salah satu faktor penting yang memotivasi perusahaan dalam melakukan akuisisi, karena perusahaan berkembang memiliki diversifikasi produk yang lebih kecil dibandingkan dengan perusahaan besar (Shi et al, 2021). Diversifikasi merupakan salah satu strategi yang dilakukan perusahaan untuk memperluas usahanya.…”