Research Repository

Board Composition, Family Ownership, Institutional Distance and the Foreign Equity Ownership Strategies of MNEs

Ilhan-Nas, Tulay and Okan, Tarhan and Tatoglu, Ekrem and Demirbag, Mehmet and Wood, Geoffrey and Glaister, Keith (2018) 'Board Composition, Family Ownership, Institutional Distance and the Foreign Equity Ownership Strategies of MNEs.' Journal of World Business, 53 (6). 862 - 897. ISSN 1090-9516

[img] Text
JWB_final revised080718withtitlepage.pdf - Accepted Version
Restricted to Repository staff only until 30 January 2020.

Download (665kB)

Abstract

In much of the developing world, families represent the dominant form of firm ownership. This study investigates how this influences equity ownership strategies when firms venture abroad. Drawing on agency theory and institutional theory, we investigate the direct effect of board composition and family ownership on the equity-based ownership strategies of multinational enterprises (MNEs) in their affiliates, and how institutional distance may moderate this. Examining foreign affiliates of listed Turkish MNEs, we find that a high ratio of independent directors is negatively linked to levels of equity ownership of MNE affiliates. We also find that a high ratio of inside directors on the board is positively associated with the equity stake of MNEs in their affiliates. The significant interaction effect between board composition, family ownership and institutional distance helps explain the unexpectedly weak effects of institutional distance.

Item Type: Article
Uncontrolled Keywords: Board composition, foreign equity ownership strategy, family business, agency theory, institutions, Turkey
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Management Science and Entrepreneurship Group
Depositing User: Elements
Date Deposited: 08 Aug 2018 09:42
Last Modified: 26 Sep 2018 13:15
URI: http://repository.essex.ac.uk/id/eprint/22657

Actions (login required)

View Item View Item