This paper reviews and summarises the results of selected empirical studies on performance gaps between multinational enterprises and their domestic counterparts. Performance gaps arise in such fields as productivity, profitability, wages, skills, factor intensity and growth. Of central interest is the question to what extent is foreign ownership an explanatory factor of performance gaps? Empirical evidence supports the existence of performance gaps between foreign and domestic firms, yet foreign ownership is a much less important explanatory factor than normally assumed. Structural factors like industry, size and multi-nationality per se are more important. It is argued that such results are broadly consistent with those derived in the literatures on ownership change, on foreign entry and on spillovers. The concluding section discusses the normative issue whether there is a case for investment promotion policies to discriminate between firms on the basis of performance gaps by ownership. / Series: Working Papers Series "Growth and Employment in Europe: Sustainability and Competitiveness"

This paper reviews and summarises the results of selected studies on performance gaps between multinational enterprises and their domestic counterparts. Performance gaps arise in such fields as productivity, technology, profitability, wages, skills and growth. While these gaps are often attributed to foreign ownership of the affiliates, the theory of the Multinational Enterprise argues that these gaps are due to being a Multinational rather than the nationality of the firm. Empirical evidence on the existence of performance gaps between foreign and domestic firms is supportive of this view: foreign ownership turns out to be a much less important explanatory factor than normally assumed. Firm-specific assets and firm characteristics like industry, size, parent country and multinationality per se are more important. Such results are broadly consistent with those derived in the literatures on ownership change, on foreign entry and on spillovers. We conclude that there is little case for foreign direct investment promotion policies to discriminate between firms on the basis of ownership. / Series: Department of Economics Working Paper Series

As Métricas de Marketing, como o valor da marca, têm sido consideradas um tópico prioritário de pesquisa, em um contexto onde gestores e acadêmicos de marketing estão sobre crescente pressão para demonstrarem que os investimentos nesta área são capazes de adicionar valor aos acionistas. O presente estudo objetivou comparar o desempenho, no mercado acionário brasileiro, do portfólio de empresas com reconhecido valor da marca – apontada pelos rankings de marcas mais valiosas brasileiras publicadas pela Interbrand – com portfólios de empresas com ações listadas na Bolsa de Valores do Estado de São Paulo. A comparação do desempenho desses portfólios no mercado acionário brasileiro ocorreu em termos de seu risco e retorno, calculados pela aplicação do modelo de três fatores de Fama e French (1993), tomando como base o estudo realizado por Madden, Fehle e Fournier (2006) no contexto internacional. Os resultados deste estudo permitem concluir que o Portfólio de Marcas Valiosas apresenta um menor risco no mercado acionário brasileiro frente aos demais portfólios estudados. A simples comparação do somatório dos valores da variável relativa ao excesso de retorno da carteira remete diretamente a percepção de maior retorno para o Portfólio de Marcas Valiosas. A possível associação de uma carteira de empresas possuidoras de marcas valiosas com a obtenção de menores riscos e, ao mesmo tempo, maiores retornos aos acionistas, permite fomentar ações e pesquisas voltadas para a gestão e desenvolvimento de marcas, bem como a uma maior valorização da área de Marketing na esfera acadêmica e empresarial. Além disso, este estudo permitiu uma aproximação entre as áreas de Marketing e Finanças, potencializando uma relação entre seus campos teóricos e entre suas atividades nas empresas. / Marketing Metrics, as brand value, have been a research priority topic, in a context where, Marketing practitioners and scholars are under intense pressure to show how marketing expenditure adds to shareholder value. This study aimed to compare the performance, in Brazilian stock market, of the portfolio of companies with recognized brand value - indicated by the rankings of most Brazilian valuable brands published by Interbrand - with other portfolios of companies listed on the Stock Exchange of São Paulo State. The comparison of the performance of such portfolios in the Brazilian stock market was in terms of their risk and return, calculated by applying the three-factor model of Fama and French (1993), built upon the study by Madden, Fehler and Fournier (2006) in the international context. The results show that the Portfolio of Valuable Brands presents a lower risk in Brazilian stock market compared to the other portfolios studied. The simple comparison of the sum of the variable values on the excess return of the portfolio, refers directly to the perception of greater return for the Portfolio of Valuable Brands. Thus, the possible relationship of companies possessing a portfolio of valuable brands with the acquisition of lower risk and, in the same time, higher returns to shareholders allows enhancing actions and encourage research aimed at the management and development of brands, as well as a greater appreciation of the Marketing field in academic and business spheres. Furthermore, this study permitted a rapprochement between the fields of Marketing and Finance, powering a theoretical relationship between these fields and between these areas in the companies.

Submitted by Mariana Vieira (mari.vieira@uol.com.br) on 2010-08-11T14:09:01Z No. of bitstreams: 1 Final enviada a banca pos defesa comentada.pdf: 107577 bytes, checksum: 9f4edfdc67998848cbe6a7dcb58b015c (MD5) / Approved for entry into archive by Vitor Souza(vitor.souza@fgv.br) on 2010-08-11T14:13:10Z (GMT) No. of bitstreams: 1 Final enviada a banca pos defesa comentada.pdf: 107577 bytes, checksum: 9f4edfdc67998848cbe6a7dcb58b015c (MD5) / Made available in DSpace on 2010-08-12T12:20:43Z (GMT). No. of bitstreams: 1 Final enviada a banca pos defesa comentada.pdf: 107577 bytes, checksum: 9f4edfdc67998848cbe6a7dcb58b015c (MD5) Previous issue date: 2010-05-18 / Corporate governance has gained importance since the last decade, when financial scandals have happened in large companies. Good governance practices started to be associated with better protection to shareholders, with equality of treatment between controlling and minority shareholders, and with more disclosure. This study presents new evidence on the relationship between governance and performance of companies, by using a new methodology in the Brazilian literature. Based on a corporate governance index, we compute annual variation of governance quality, and classify the companies into three groups (positive, negative and neutral governance change). Then, we verify whether there is significant difference between governance change and variation in firm performance. Our results indicate that positive (negative) changes in governance are associated with positive (negative) variation in the operational performance of companies. On the other hand, there is no evidence of a relation between changes in governance and stock returns. / A governança corporativa ganhou importância crescente a partir da última década, quando ocorreram escândalos de fraudes financeiras em grandes empresas. As boas práticas de governança corporativa passaram a ser vistas como forma de proteger os direitos dos acionistas, garantir igualdade de tratamento entre acionistas controladores e minoritários e assegurar a transparência na divulgação de informações. Este trabalho apresenta novas evidências sobre a relação entre práticas de governança e desempenho das empresas no Brasil. Utilizamos uma metodologia inédita na literatura brasileira. Com base em um índice de práticas de governança corporativa, computamos a variação anual na qualidade de governança e classificamos as empresas em 3 grupos (variação positiva, neutra e negativa). Em seguida, verificamos se existe diferença entre variações na governança e variações no desempenho das empresas. Nossos resultados indicam que variações positivas (negativas) na qualidade da governança estão associadas a variações positivas (negativas) no desempenho operacional das empresas. Por outro lado, não existem evidências que variações na qualidade de governança tenham impacto no retorno das ações.

Seguindo as linhas de pesquisa que visam relacionar o impacto do relacionamento com os clientes aos resultados financeiros da empresa, o presente estudo procura avaliar o impacto do word-of-mouth (WOM) negativo no retorno da ação da empresa. O comportamento de falar mal da empresa por parte dos consumidores insatisfeitos pode destruir o valor dos market-based assets (customer equity e brand equity), comprometendo o desempenho das ações da companhia. Considerando a literatura existente, esta pesquisa busca identificar o impacto do WOM negativo no desempenho das ações das empresas no curto e no longo prazo. O primeiro estudo replica o modelo de Luo (2007) para identificar o impacto do WOM negativo nos retornos de curto prazo da ação das empresas. O segundo estudo busca verificar o impacto de longo prazo a partir da comparação do desempenho de portfólios compostos por ações de empresas em relação ao seu nível de reclamações. Os resultados do primeiro estudo convergiram em certa medida com os resultados apresentados por Luo (2007) para o setor bancário, apontando para um impacto negativo das reclamações no retorno da ação, mas foram mistos quando as empresas foram avaliadas individualmente. O segundo estudo demonstrou que o portfólio composto por ações de empresas menos reclamadas teve um retorno acumulado superior ao portfólio composto pelas ações mais reclamadas, além de apresentar um risco inferior ao risco de mercado. As implicações e limitações do estudo são discutidas e são sugeridas pesquisas futuras a partir deste estudo. / Following previous research that seek to integrate customer relationship impact to firm value, the present study focus to assess the impact of negative word-of-mouth (WOM) on stock returns. Dissatisfied customers that spread negative WOM about the company can ruin market-based assets (customer equity and brand equity) and hurt its performance. Based on present literature, this research seeks to identify the impact of negative WOM on stocks’ short and long term performances. The first study replicates Luo’s (2007) model to identify the short term impact of negative WOM on stock performance. The second aims to identify the long term impact of negative WOM by comparing the performance of portfolios created based on companies level of complaints. The first study accomplished to partially replicate the results found by Luo (2007) for banking industry, finding a negative impact of negative WOM on firm stock returns, although it found mixed results when the impact was assessed for each company individually. The second study demonstrates that a portfolio with less complained companies has a superior performance over a portfolio with more complained companies, while presenting a risk below market’s level. The results implications and limitations are discussed and further studies suggestions are made.

As Métricas de Marketing, como o valor da marca, têm sido consideradas um tópico prioritário de pesquisa, em um contexto onde gestores e acadêmicos de marketing estão sobre crescente pressão para demonstrarem que os investimentos nesta área são capazes de adicionar valor aos acionistas. O presente estudo objetivou comparar o desempenho, no mercado acionário brasileiro, do portfólio de empresas com reconhecido valor da marca – apontada pelos rankings de marcas mais valiosas brasileiras publicadas pela Interbrand – com portfólios de empresas com ações listadas na Bolsa de Valores do Estado de São Paulo. A comparação do desempenho desses portfólios no mercado acionário brasileiro ocorreu em termos de seu risco e retorno, calculados pela aplicação do modelo de três fatores de Fama e French (1993), tomando como base o estudo realizado por Madden, Fehle e Fournier (2006) no contexto internacional. Os resultados deste estudo permitem concluir que o Portfólio de Marcas Valiosas apresenta um menor risco no mercado acionário brasileiro frente aos demais portfólios estudados. A simples comparação do somatório dos valores da variável relativa ao excesso de retorno da carteira remete diretamente a percepção de maior retorno para o Portfólio de Marcas Valiosas. A possível associação de uma carteira de empresas possuidoras de marcas valiosas com a obtenção de menores riscos e, ao mesmo tempo, maiores retornos aos acionistas, permite fomentar ações e pesquisas voltadas para a gestão e desenvolvimento de marcas, bem como a uma maior valorização da área de Marketing na esfera acadêmica e empresarial. Além disso, este estudo permitiu uma aproximação entre as áreas de Marketing e Finanças, potencializando uma relação entre seus campos teóricos e entre suas atividades nas empresas. / Marketing Metrics, as brand value, have been a research priority topic, in a context where, Marketing practitioners and scholars are under intense pressure to show how marketing expenditure adds to shareholder value. This study aimed to compare the performance, in Brazilian stock market, of the portfolio of companies with recognized brand value - indicated by the rankings of most Brazilian valuable brands published by Interbrand - with other portfolios of companies listed on the Stock Exchange of São Paulo State. The comparison of the performance of such portfolios in the Brazilian stock market was in terms of their risk and return, calculated by applying the three-factor model of Fama and French (1993), built upon the study by Madden, Fehler and Fournier (2006) in the international context. The results show that the Portfolio of Valuable Brands presents a lower risk in Brazilian stock market compared to the other portfolios studied. The simple comparison of the sum of the variable values on the excess return of the portfolio, refers directly to the perception of greater return for the Portfolio of Valuable Brands. Thus, the possible relationship of companies possessing a portfolio of valuable brands with the acquisition of lower risk and, in the same time, higher returns to shareholders allows enhancing actions and encourage research aimed at the management and development of brands, as well as a greater appreciation of the Marketing field in academic and business spheres. Furthermore, this study permitted a rapprochement between the fields of Marketing and Finance, powering a theoretical relationship between these fields and between these areas in the companies.

abstract: Shareholder Activism is a mechanism by which investors who hold a significant but non-majority percentage of a company’s stock, exercise their voting rights, participate in corporate governance and influence operational decisions of target companies. The purpose is improve corporate governance, increase firm performance and boost share -holders’ returns. Existing studies of shareholder activism, based largely in mature capital markets like the US, come to different conclusions regarding its impact on firm performance. In this paper, I collect data on shareholder activism events in the China A Share market between 2006 and 2016. The sample includes 60 companies targeted by 42 activist investors over this period. I find that institutional investors, typically industrial capital and private funds, playing an increasingly important role in corporate governance of Chinese listed companies through activism. The disclosure of the holdings of activists results in large gains in the target firm. I also find subsequent improvements in long -term operational performance of target firms. Activist investors in China focus on smaller targets and those characterized by higher agency costs and lower operating performance. Activists appear to be largely concerned with improvements in business strategy and M&A activity. Non-hostile behavior is more likely to be related to successful activism in China. In addition to statistical evidence, I present case studies of the “BaoWan dispute” and the activist investment of Butterfly Capital in two firms, “Guonong” and “Xiuqiang”. The case studies highlight the mechanism employed by these firms to influence performance. I conclude with policy recommendations and direction for further research. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2017

abstract: This study investigates the performance effects of cross-industry mergers and acquisitions (M&A) using a sample of firms listed in China’s Growth Entrepreses Market (GEM). Compared to firms listed in the Shanghai and Shenzhen Stock Exchanges, firms listed in the GEM are much smaller and tend to derive the majority of their revenues from a single industry. I first analyze the motives for firms listed in the GEM to engage in M&As and propose a set of factors that may influence their likelihood of M&A activities. Using data on 55 cross-industry M&As between January 1, 2012 and December 31, 2016, I find that investor generally responded positively in short-term, as indicated by the positive accumulated abonormal returns over the first five trading days following the announcements. Meanwhile, I found no evidence that investors benefited from cross-industry M&As in long-term over three years after the event. Further analysis suggests that the short-term effects of cross-industry M&As by GEM listed firms were influenced by the target firm’s market valuation, whether the M&A was paid by cash, the amount of the payment, and the degree of difference between the acquiring firm’s and the target firm’s industries. These findings have important implications for the investors and senior executives of firms listed in the GEM. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2018

Seguindo as linhas de pesquisa que visam relacionar o impacto do relacionamento com os clientes aos resultados financeiros da empresa, o presente estudo procura avaliar o impacto do word-of-mouth (WOM) negativo no retorno da ação da empresa. O comportamento de falar mal da empresa por parte dos consumidores insatisfeitos pode destruir o valor dos market-based assets (customer equity e brand equity), comprometendo o desempenho das ações da companhia. Considerando a literatura existente, esta pesquisa busca identificar o impacto do WOM negativo no desempenho das ações das empresas no curto e no longo prazo. O primeiro estudo replica o modelo de Luo (2007) para identificar o impacto do WOM negativo nos retornos de curto prazo da ação das empresas. O segundo estudo busca verificar o impacto de longo prazo a partir da comparação do desempenho de portfólios compostos por ações de empresas em relação ao seu nível de reclamações. Os resultados do primeiro estudo convergiram em certa medida com os resultados apresentados por Luo (2007) para o setor bancário, apontando para um impacto negativo das reclamações no retorno da ação, mas foram mistos quando as empresas foram avaliadas individualmente. O segundo estudo demonstrou que o portfólio composto por ações de empresas menos reclamadas teve um retorno acumulado superior ao portfólio composto pelas ações mais reclamadas, além de apresentar um risco inferior ao risco de mercado. As implicações e limitações do estudo são discutidas e são sugeridas pesquisas futuras a partir deste estudo. / Following previous research that seek to integrate customer relationship impact to firm value, the present study focus to assess the impact of negative word-of-mouth (WOM) on stock returns. Dissatisfied customers that spread negative WOM about the company can ruin market-based assets (customer equity and brand equity) and hurt its performance. Based on present literature, this research seeks to identify the impact of negative WOM on stocks’ short and long term performances. The first study replicates Luo’s (2007) model to identify the short term impact of negative WOM on stock performance. The second aims to identify the long term impact of negative WOM by comparing the performance of portfolios created based on companies level of complaints. The first study accomplished to partially replicate the results found by Luo (2007) for banking industry, finding a negative impact of negative WOM on firm stock returns, although it found mixed results when the impact was assessed for each company individually. The second study demonstrates that a portfolio with less complained companies has a superior performance over a portfolio with more complained companies, while presenting a risk below market’s level. The results implications and limitations are discussed and further studies suggestions are made.

Seguindo as linhas de pesquisa que visam relacionar o impacto do relacionamento com os clientes aos resultados financeiros da empresa, o presente estudo procura avaliar o impacto do word-of-mouth (WOM) negativo no retorno da ação da empresa. O comportamento de falar mal da empresa por parte dos consumidores insatisfeitos pode destruir o valor dos market-based assets (customer equity e brand equity), comprometendo o desempenho das ações da companhia. Considerando a literatura existente, esta pesquisa busca identificar o impacto do WOM negativo no desempenho das ações das empresas no curto e no longo prazo. O primeiro estudo replica o modelo de Luo (2007) para identificar o impacto do WOM negativo nos retornos de curto prazo da ação das empresas. O segundo estudo busca verificar o impacto de longo prazo a partir da comparação do desempenho de portfólios compostos por ações de empresas em relação ao seu nível de reclamações. Os resultados do primeiro estudo convergiram em certa medida com os resultados apresentados por Luo (2007) para o setor bancário, apontando para um impacto negativo das reclamações no retorno da ação, mas foram mistos quando as empresas foram avaliadas individualmente. O segundo estudo demonstrou que o portfólio composto por ações de empresas menos reclamadas teve um retorno acumulado superior ao portfólio composto pelas ações mais reclamadas, além de apresentar um risco inferior ao risco de mercado. As implicações e limitações do estudo são discutidas e são sugeridas pesquisas futuras a partir deste estudo. / Following previous research that seek to integrate customer relationship impact to firm value, the present study focus to assess the impact of negative word-of-mouth (WOM) on stock returns. Dissatisfied customers that spread negative WOM about the company can ruin market-based assets (customer equity and brand equity) and hurt its performance. Based on present literature, this research seeks to identify the impact of negative WOM on stocks’ short and long term performances. The first study replicates Luo’s (2007) model to identify the short term impact of negative WOM on stock performance. The second aims to identify the long term impact of negative WOM by comparing the performance of portfolios created based on companies level of complaints. The first study accomplished to partially replicate the results found by Luo (2007) for banking industry, finding a negative impact of negative WOM on firm stock returns, although it found mixed results when the impact was assessed for each company individually. The second study demonstrates that a portfolio with less complained companies has a superior performance over a portfolio with more complained companies, while presenting a risk below market’s level. The results implications and limitations are discussed and further studies suggestions are made.