The Determinants of Foreign Multinational Enterprise Firms' Board Governance in Caribbean Offshore Island Economies
The Determinants of Foreign Multinational Enterprise Firms' Board Governance in Caribbean Offshore Island Economies
Using a unique sample of 171 listed firms in the Caribbean region, this paper explores the influence of post-entry ownership of foreign MNEs on the board composition of subsidiaries. Our findings reveal higher ownership is a means of enhancing the security of property rights while simultaneously creating a liability of foreignness. This causes subsidiaries to externally contract for resources, leading to the hiring of more lawyers and fewer accountants. The opposite is true for progressively lower levels of foreign MNE ownership. Firms' adoption of shareholder rights governance amplifies these findings, while state formal institutional quality reverses them.
Caribbean, Foreign MNE networks, Institutions, Subsidiary governance, Tax havens
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
1 December 2022
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2022)
The Determinants of Foreign Multinational Enterprise Firms' Board Governance in Caribbean Offshore Island Economies.
Journal of International Management, 28 (4), [100936].
(doi:10.1016/j.intman.2022.100936).
Abstract
Using a unique sample of 171 listed firms in the Caribbean region, this paper explores the influence of post-entry ownership of foreign MNEs on the board composition of subsidiaries. Our findings reveal higher ownership is a means of enhancing the security of property rights while simultaneously creating a liability of foreignness. This causes subsidiaries to externally contract for resources, leading to the hiring of more lawyers and fewer accountants. The opposite is true for progressively lower levels of foreign MNE ownership. Firms' adoption of shareholder rights governance amplifies these findings, while state formal institutional quality reverses them.
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More information
Accepted/In Press date: 17 February 2022
e-pub ahead of print date: 2 March 2022
Published date: 1 December 2022
Additional Information:
Publisher Copyright:
© 2022 Elsevier Inc.
Copyright:
Copyright 2022 Elsevier B.V., All rights reserved.
Keywords:
Caribbean, Foreign MNE networks, Institutions, Subsidiary governance, Tax havens
Identifiers
Local EPrints ID: 475301
URI: http://eprints.soton.ac.uk/id/eprint/475301
ISSN: 1075-4253
PURE UUID: 5e4b6439-44f0-4678-849d-c7cd60a123f2
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Date deposited: 15 Mar 2023 17:31
Last modified: 17 Mar 2024 03:52
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