Beschreibung
Institutions do not treat everyone the same. We examine unequal treatment of foreign and domestic firms in terms of security of property rights and discuss implications for economic organization at the transaction cost level. We refine the shift parameter framework introduced by Williamson (1991) with insights from the study of property rights institutions to learn more about how institutions actually shift parameters critical for efficient alignment of buyers and sellers. First, we unbundle property rights institutions applying various models relating to politically connected firms, the nature of government finance and international policy coordination and transmission by using firm and country level data. This isolates variations in firm constraints due to different levels of property rights security. Second, we establish channels not only showing relative shifts for differences in efficient alignment behavior for different organizational arrangements but also for the same arrangement for firms with different identities and roles in the polity. As a result, we identify situations where responses of foreign and domestic firms are traced back to differences in constraints in security of property rights while operating in the same country. This explains economic governance of firms in response to the channels effective for buyers and sellers within the institutional environment in which they operate. Our findings suggest that it is more likely that domestic firms are looking for partnerships with foreign firms in order to secure their property rights rather than vice versa. This challenges a wide range of international business literature which claims that there is an extra cost of doing business for foreign compared to domestic firms and therefore foreign firms engage in alliances with local partners to mitigate them.| Zeitraum | 2 Sept. 2016 → 5 Sept. 2016 |
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| Ereignistitel | Third WINIR Conference on “ Institutions and Human Behaviour ” |
| Veranstaltungstyp | Keine Angaben |
| Bekanntheitsgrad | International |