Corporate governance and international location decisions of multinational enterprises

Lammertjan Dam*, Bert Scholtens, Elmer Sterken

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

This paper analyses international location decisions of corporations based on corporate governance considerations. Using firm level data on 540 Multinational Enterprises (MNEs) with 44,149 subsidiaries in 188 countries, we test whether firms with relatively good governance standards are more often located in countries with a weak governance system. We find empirical support for this hypothesis, especially for those corporations present in low-income countries.

Original languageEnglish
Pages (from-to)1330-1347
Number of pages18
JournalCorporate Governance: An International Review
Volume15
Issue number6
DOIs
Publication statusPublished - Nov 2007

Keywords

  • Corporate governance
  • Corporate social responsibility
  • Location behaviour
  • Multinational enterprises

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