Endogenous ownership structure:factors affecting the post-privatisation equity in largest Hungarian firms

Using a data set for the 162 largest Hungarian firms during the period of 1994-1999, this paper explores the determinants of equity shares held by both foreign investors and Hungarian corporations. Evidence is found for a post-privatisation evolution towards more homogeneous equity structures, where dominant categories of Hungarian and foreign owners aim at achieving controlling stakes. In addition, focusing on firm-level characteristics we find that exporting firms attract foreign owners who acquire controlling equity stakes. Similarly, firm-size measurements are positively associated with the presence of foreign investors. However, they are negatively associated with 100% foreign ownership, possibly because the marginal costs of acquiring additional equity are growing with the size of the assets. The results are interpreted within the framework of the existing theory. In particular, following Demsetz and Lehn (1985) and Demsetz and Villalonga (2001) we argue that equity should not be treated as an exogenous variable. As for specific determinants of equity levels, we focus on informational asymmetries and (unobserved) ownership-specific characteristics of foreign investors and Hungarian investors

International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis

In this study, we examine the effects of stringent insider trading laws’ enforcement, institutions and stock market development on international equity portfolio allocation using data from 44 countries over the period 2001-2015. Our results suggest that stringent insider trading laws and their enforcement exert a positive and significant impact on international portfolio investment allocation. Further analysis indicates that the interaction between a country’s institutional quality, stock market development and enforcement of insider trading laws have a positive and significant effect on international equity portfolio allocation. The findings of this study have implications for the design of portfolio investment trading strategies and contribute to the literature on foreign equity investment decisions

Privatisation and entrepreneurship in the break-up of the USSR

SIGLEAvailable from British Library Document Supply Centre- DSC:3287.19(NU-CMBOR-OP--33) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Founding family leadership and industry profitability

Founding family firms, Corporate governance, Industry profit margins, Industry competition, Sweden, L26,

Does it transfer? The effects of pre-internationalization experience on post-entry organizational learning in entrepreneurial Chinese firms

Although organizational learning plays a critical role in the internationalization of firms, researchers have largely focused on learning that occurs after a firm’s international entry (“learning by doing”). Few studies have discussed how a firm’s experiences prior to international entry affect its organizational learning after entry. Using a sample of Chinese internationalizers, we argue that pre-entry characteristics will influence organizational learning after international entry. We argue and show that prior experience with international companies in the domestic market is transferable and does affect an organization’s post-entry learning through a mechanism called analogical reasoning or “learning by analogy.