Ruhr Economic Papers

Ruhr Economic Papers #416

Time to BRIC It? – Internationalization of European Family Firms in Europe, North America and the BRIC Countries

by Vivien Procher, Diemo Urbig and Christine Volkmann

RWI, 05/2013, 12 S./p., 8 Euro, ISBN 978-3-86788-471-6 DOI: 10.4419/86788471

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Abstract

For a sample of 1243 European companies, we analyse the link between firm type and foreign direct investment (FDI) locations. We find substantial empirical evidence that being a family firm does not only affect the overall propensity for FDI but that this effect is also specific to target regions. Overall, family firms invest more than managerial-led firms, particularly in Europe and North America. Furthermore the BRIC countries Brazil, Russia, India and China do not constitute a homogenous attractiveness cluster for FDI.

JEL-Classification: D21, F23, L22

Keywords: Foreign direct investment; family firms; BRIC

Published as:

Procher, V., D. Urbig and C. Volkmann (2013), Time to BRIC It? Internationalization of European Family Firms in Europe, North America and the BRIC Countries. Applied Economics Letters 20 (16): 1466-1471.

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