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

Bykova, Anna; Jardón, Carlos M.

doi:10.1016/j.jeconbus.2017.07.001

Cited by 9 publications

(5 citation statements)

References 33 publications

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“…Being an emerging country and suffering from a competitiveness gap Russia might be prone to encouraging foreign investments including those arriving through the channel of M&A. The positive role of foreign investments for Russian companies was confirmed in the study of (Bykova and Jardon, 2017). Before challenging hypotheses, it is necessary to provide a brief description of merger control in Russia.…”

Section: Merger Control In Russia and Hypothesis Developmentmentioning

confidence: 99%

Russian merger control: in favor of foreign companies?

Redkina

Molodchik

Jardón

2021

IJOEM

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PurposeThe paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.Design/methodology/approachThe discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.FindingsThe study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.Originality/valueThe paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

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Section: Merger Control In Russia and Hypothesis Developmentmentioning

confidence: 99%

Russian merger control: in favor of foreign companies?

Redkina

Molodchik

Jardón

2021

IJOEM

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“…According to the research by A. Bykova and C.M. Jardon, foreign capital significantly reduces the negative effect of an economic decline [15].…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

How Do External Shocks Affect the Economic Efficiency of Companies with Foreign Direct Investment?

2022

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The purpose of this study is to assess the effectiveness of export and import activities of domestic companies with foreign direct investment during the external shocks. The relevance of the research is due to the fact that the impact of side effects of FDI on domestic companies and economic uncertainty after the sanctions and the outbreak of the pandemic was ambiguous. The empirical base contains about 170,000 observations on 18,799 operating companies with a foreign capital share of at least 10% for the period from 2012 to 2020, obtained from the Ruslana database - Bureau Van Dijk. For the purposes of the study, the companies are grouped by the industry and their roles in international trade. Efficiency assessment is measured by using the data envelopment analysis (DEA), taking into account the spillover effects from foreign direct investment. The results of the study confirm that firms that trade in both directions have better performance. Next come companies focused only on export or import. Companies that are not involved in international trade are the least efficient (hypothesis 1). Industries that benefit from FDI inflows include more capital-intensive sectors (hypothesis 2). External shocks have a negative impact on the efficiency of companies with FDI (hypothesis 3). This understanding has important implications for long-term economic growth and the recovery of the Russian economy in the current external shocks.

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“…Additionally, Fiala & Havranek (2017) found that during crises, the risk of contagion from a foreign parent bank to its local subsidiary is substantially lower than the risk between two local banks. There is also proof from nonfinancial sectors that during a crisis, foreign-owned firms are more resilient (Kolasa, Rubaszek & Taglioni, 2010) and can maintain their performance (Bykova & Jardon, 2017).…”

Section: Foreign Ownership and Corporate Financial Decision-makingmentioning

confidence: 99%

Foreign Ownership and Corporate Financial Decision Making: A Review and Future Research Agenda

Kitri

Wiryono

Nainggolan

2022

JAB

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To overcome this problem, in need of capital resources, firms and countries try to acquire additional capital externally through foreign investment. Previous research has examined the effect of foreign ownership on a firm's decision-making and performance. However, the systematic literature review shows that the results are still inconclusive and confuse firms and governments in determining their strategy for promoting foreign investment. There are two gaps identified surrounding current research on foreign ownership that needs special attention. First, most research considers foreign ownership as an ownership type and focuses less on the actual ownership types. Second, research has found that different characteristics of the home or host country involved in foreign investment may moderate the relationship between foreign ownership and a firm's decision-making but only considers a one-sided observation of country characteristics (home or host country only). This research proposes future research agenda in examining how different foreign owner's ownership types affect a firm's decision-making, risk, and performance and whether country characteristics differences moderate the relationships between foreign owner's ownership types, firm's decision-making, risk, and performance.

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

Cited by 9 publications

References 33 publications

Russian merger control: in favor of foreign companies?

Russian merger control: in favor of foreign companies?

How Do External Shocks Affect the Economic Efficiency of Companies with Foreign Direct Investment?

Foreign Ownership and Corporate Financial Decision Making: A Review and Future Research Agenda

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