Date of Award

Winter 2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Program/Concentration

Business Administration-Finance

Committee Director

Mohammad Najand

Committee Member

John Griffith

Committee Member

David Selover

Abstract

Countless studies with a wide variety of financial and economic indicators have been conducted over the years within the context of international business research, all searching for hints or signals as to what makes the never ending process of globalization progress. Our research follows these efforts while focusing specifically on Foreign Direct Investment (FDI). Our first study sets out to empirically test if nations adopting the inflation targeting (IT) monetary policy are more successful in attracting inbound and outbound FDI cash flows than those nations utilizing alternative monetary policies. IT is a relatively new policy which was first put into action by New Zealand in 1990. We expand the original regression to inquire if the up and coming monetary policy is more successful for developing or developed nations, as well as using alternative dependent variables of imports and exports.

Investigating FDI from the firm level, we next study the impact of cross-listed target firms on cross-border merger and acquisition (M&A) activity. Specifically, we investigate whether there is a direct link between a target firm being cross-listed in the acquirer's home nation with the short- and long-run stock market returns of the acquiring firms. The sample includes cross-border acquisitions (United States acquirer with a non- US target) from 1990-2010. Motivated by the Bonding Hypothesis, which suggests that by way of a US exchange listing, managers and controlling shareholders from countries with weaker investor protection commit themselves to protect minority shareholders' interests (Coffee 1999; Stulz 1999), we test the influence of a foreign cross-listed target firm versus that of a non-cross-listed target firms.

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DOI

10.25777/x55s-2866

ISBN

9781321558623

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