International subsidiary performance of Indian multinationals in the extractive sector: The role of institutional quality, corruption and investment regime

Das, Khanindra Ch.; Mahalik, Mantu Kumar

doi:10.1016/j.resourpol.2020.101664

Cited by 12 publications

(12 citation statements)

References 44 publications

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“…It means that firms in countries perceived as less corrupt are more profitable. While the result is favourable, it contradicts the findings of Das and Mahalik (2020), which found corruption as a driver of performance in the mining and metals sector. The result is expected because, in the current business environment where there is a growing interest in the building of sustainable businesses, the business and investor community are continuously placing premium on sustainable business practices.…”

Section: Resultscontrasting

confidence: 91%

Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

Asare

Duho

Agyenim‐Boateng

et al. 2021

JFC

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Purpose This study aims to examine the effect of anti-corruption disclosure on the profitability and financial stability of extractive firms in Africa. It also tests the convergence of profitability and financial stability. Design/methodology/approach The study uses an unbalanced panel data of 27 firms operating in five African countries covering the period 2006–2018. Anti-corruption assessment is done in line with GRI 205: Anti-Corruption. Profitability is measured using the return on asset and return on equity, whereas the z-score measures financial stability. The study uses the panel-corrected error regression technique for estimation. Findings There is evidence that corruption disclosure reduces the financial stability of firms. Disclosures on corruption analysis and corruption training are the main factors driving the reduction in financial stability. The effect on profitability is not significant except in the case of disclosure on corruption response, which also reduces profitability. There is strong statistical evidence to suggest that profitability and financial stability of extractive firms converge. This suggests that less-performing firms catch up with high performers. Research limitations/implications The study has relevant implications for practitioners, policymakers and the academic community. The study uses data that is skewed towards large extractive firms. Originality/value This study is premier in exploring the effect of anti-corruption disclosure on performance metrics among extractive firms in Africa. It is also unique in providing a test of both beta and sigma convergence of performance among the firms.

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Section: Resultscontrasting

confidence: 91%

Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

Asare

Duho

Agyenim‐Boateng

et al. 2021

JFC

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“…Mineral rents also produced mixed results. This is consistent with studies by Zoogah (2018) and Das and Mahalik (2020). These inconsistencies may be explained by the exploitative and rent-seeking nature of the natural resource sector.…”

Section: Regression Resultssupporting

confidence: 91%

Foreign ownership and firm performance in Sub-Saharan Africa

Webster

Okafor

Barrow

2022

Transnational Corporations Review

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Our study investigates the effects of foreign ownership on firm performance with respect to profitability, productivity, export intensity, and skills acquisition in Sub-Saharan African (SSA) countries. This is particularly important given that in the last 3 decades, stock of FDI has increased over 20,000% in SSA countries. To achieve the objectives of this paper, we employed firm-and country-level data from the World Bank Enterprise Surveys and the World Bank Development Indicators respectively. Results of the least squares dummy variable (LSDV) and propensity score matching (PSM) estimations showed that foreign ownership was positively associated with higher levels of financial profitability, productivity, exports, and skilled labour acquisition. Policy implications were deduced from the findings.

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“…Specifically, we had not the measure of intermediate consumption for the calculation of the TFP in subsidiaries (Levinsohn and Petrin, 2003;Petrin et al, 2004). In addition, we could not approximate in a better way the characteristics of the subsidiaries age or size as found in prior literature (Borini et al, 2012;Das and Mahalik, 2020;Rabbiosi and Santangelo, 2013). Fourth, regarding the methodology, we were not able to apply panel data or a lag structure in the model because with our data set, we have information only about the connection between parent and subsidiaries firms in the last year available.…”

Section: Discussionmentioning

confidence: 99%

Learning processes and knowledge transfer in the upward spiral model: an empirical assessment of springboard multinational enterprises

Torrecillas

Fischer

2021

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Purpose The springboard theory for multinational enterprises and the upward spiral model address the expansion of emerging countries’ multinational enterprises (MNEs) abroad as a set of resource-building stages. This paper aims to analyze this model by qualifying knowledge flows in three domains: learning effects, transfer flows and global connections. Design/methodology/approach The authors use 2018 data from the ORBIS database to identify evidence concerning the springboard MNE (SMNE) phenomenon. The authors select MNE firms from 93 emerging economies with presence in 71 developed and 93 developing countries. In addition, the authors differentiate between the levels of technological intensity of emerging market MNEs’ sectors. Findings The results highlight the existence of learning processes taking place in subsidiaries and feeding back into parent firms, as well as the existence of capability transfer from home to host units. Originality/value The main contribution is the addition of empirical evidence on the SMNE and specifically the upward spiral model, considering the micro-level and the productivity differences between parent firm and subsidiaries.

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International subsidiary performance of Indian multinationals in the extractive sector: The role of institutional quality, corruption and investment regime

Cited by 12 publications

References 44 publications

Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

Foreign ownership and firm performance in Sub-Saharan Africa

Learning processes and knowledge transfer in the upward spiral model: an empirical assessment of springboard multinational enterprises

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