AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
whereby indigenous firms patent around core technologies, moderated by a set of inter-regional factors.
Beneficial inter-regional factors include short geographic distance between FDI-host regions (FHRs) and
spillovers-recipient regions (SRRs), a high level of marketisation in FHRs, and a high degree of competition in
FHRs. Policy recommendations are offered to raise balanced and sustainable technological development. (For
more information, please contact: Yi (Elizabeth) Wang, University of Leeds, United Kingdom:
y.e.wang@leeds.ac.uk)
Making Room for Something New: Foreign Direct Investment and Host-Country Entrepreneurial Activity
Phillip Kim, University of Wisconsin - Madison
Mingxiang Li, University of Wisconsin - Madison
This study presents new theory and evidence for how foreign direct investment (FDI) spurs entrepreneurial
activity in host countries. Current theories provide limited guidance for why foreign investment and domestic
societal conditions may jointly affect business creation. The findings from our panel analyses of 104 countries
are consistent with our predictions that foreign direct investment positively relates to business creation and that
this positive effect is strongest in countries with poor institutional support, weak political constraint, and low
general human capital. Our work provides new insights into how cross-border investments and domestic
societal conditions influence entrepreneurial activity especially in emerging economies. (For more information,
please contact: Phillip Kim, University of Wisconsin - Madison, USA: pkim@bus.wisc.edu)
Subsidiary Linkage Patterns: Learning Prospects and Spillover Risks
Ulf Andersson, Copenhagen Business School
Alessandra Perri, Universidad Carlos III de Madrid
Phillip C. Nell, Copenhagen Business School
Grazia D. Santangelo, University of Catania
This paper investigates the pattern of subsidiaries' local vertical linkages under varying levels of competition and
subsidiary capabilities. Contrary to most previous literature, we explicitly account for the double role of such
linkages as conduits of learning prospects as well as potential channels for spillovers to competitors. We find a
curvilinear relationship between the extent of competitive pressure and the quality of a subsidiary's set of local
linkages. Furthermore, the extent to which a subsidiary possesses capabilities moderates this relationship: Very
capable subsidiaries in strongly competitive environments tend to shy away from high quality linkages. We
discuss our findings in light of the literature on spillovers and inter-organizational linkages. (For more
information, please contact: Ulf Andersson, Copenhagen Business School, Denmark: ua.smg@cbs.dk)
Session: 3.4.7 - Competitive
Track: 10 - Economics, Finance and Accounting
Capital Structure
Presented On: July 3, 2012 - 14:30-15:45
Chair: Grigorios Livanis, Northeastern University
U.S. Listing and International Asset Pricing: The Absence of Cross-Listing Premiums
Liu Wang, Providence College
This paper explores the role of cross-listing in international asset pricing with a special focus on misvalued firms
using a panel sample of Chinese firms with and without U.S. listings. In contrast with conventional theories that
predict enormous cross-listing benefits, no significant premiums are found when Chinese firms cross-list in the
AIB 2012 Conference Proceedings
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