New Ventures or Acquisitions. The Choice of Swedish Multinational Enterprises

Greenfield vs. Acquisition: The Strategy of Japanese Investors in the United States

“…Similarly, international experience had no bearing on the entry strategies of Swedish MNEs in Zejan's (1990) Neither of the two financial variables, the relative value index RVI nor the parent's leverage ratio LEV, are significant. 9 The lack of significance of the relative value index is not surprising.…”

“…Its exploitation can therefore be achieved through foreign acquisitions (Caves and Mehra 1986). Dubin (1976), Wilson (1980), Yip (1982), Caves and Mehra (1986), and Zejan (1990) found a correlation between a parent's overall product diversification and its preference for acquisition. (Yip, 1982 stocks are over-or-undervalued (Khoury 1980).…”

“…While some recent empirical research (Gatignon and Anderson 1988; Gomes-Casseres 1989Sanna-Randaccio 1990;Hennart 1991a) has investigated the choice between full and partial control of subsidiaries, there have been very few large-sample, multivariate studies of the determinants of the choice between greenfield entry and acquisitions (Caves and Mehra 1986;Kogut and Singh 1988;Zejan 1990). The topic has been similarly neglected in the domestic context, with Yip (1982) being, to the best of our knowledge, the only empirical study of the determinants of domestic expansion through internal growth or acquisitions.…”

Wholly Owned Subsidiary Versus Technology Licensing in the Worldwide Chemical Industry

“…(GDP) The size of the foreign market can actually influence the profitability of the investment and therefore the mode of entry in the foreign country (Gomes-Casseres, 1989;Zejan, 1990). We use the Barro-Lee database (a widely used source of country level data) to obtain information about the level of GDP in the host countries.…”

Analysing foreign market entry – The choice between greenfield investment and acquisitions

“…There does not, however, appear to be any in-depth analysis in the literature of why a firm would choose one alternative over the other. 1 There have been a few empirical studies which identify certain firm characteristics and market characteristics that affect the choice of entry strategy, namely by Caves and Mehra (1986) for inward investment in the US, Zejan (1990) for outward investment from Sweden and Hennart and Park (1993) for the entry of Japanese firms into the US. In this paper, we 1 While Gordon and Bovenberg (1997) distinguish between acquisitions and greenfield investment in their analysis of international capital mobility, they do not examine why a firm would want to prefer the former or the latter.…”