Relationship with Headquarters and Divestments of Foreign Subsidiaries: The Hysteresis Perspective
Abstract
This paper examines the conditions under which foreign subsidiaries of multinational corporations (MNCs) are less prone to divestments. In the study, we examine the importance of foreign subsidiaries to MNCs based upon (1) product-level vertical integration, (2) human capital investments, and (3) technological investments in the subsidiaries. Given that we examine the probability that a subsidiary divestment will occur under the condition that...
Paper Details
Title
Relationship with Headquarters and Divestments of Foreign Subsidiaries: The Hysteresis Perspective
Published Date
Jul 4, 2017
Volume
57
Issue
4
Pages
545 - 570
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