MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms. (authors' abstract)

No description available.

No description available.

No description available.

No description available.

No description available.

This thesis analyses whether compliance behaviour in financial reporting may be influenced by differences in regulatory sources and in the design of the regulations themselves. A logistic binomial model is -used to describe the relative odds of full compliance rather than regulatory avoidance by way of partial or creative compliance. The analysis is based on the accounting policies adopted by internationally listed companies registered in Europe where, despite the harmonising impact of the European company law directives, regulatory strategies in accounting continue to be diverse.

Using a sample of 45,283 firm year observations between 1993–2012, I examine the influence of different types of diversification and M&A accounting on firm value. I find that there are different explanations for earlier variations among documented discounts. I find different value effects for geographical and industrial diversification. These effects vary over time, with decreasing discounts for geographical diversification. Furthermore, I find different value effects of M&A accounting between industries. Controlling for firm fixed effects leads to insignificant results for most regressions, which indicates that underlying firm characteristics play an important role in the determination of the discount. Together, these findings explain earlier documented differences in the literature on the diversification discount.

No description available.

This thesis groups three papers examining the role of multi-location firms in the geographic diffusion of knowledge. The first chapter examines whether a firm's headquarters can tap into the knowledge pool in a remote location through FDI. Using U.S. patent data, I show that an R&D headquarters in location “A” cites third party patents from location “B” disproportionately (relative to a control group also from location “A”) when the firm has an R&D satellite in location “B”. This “satellite effect” on knowledge diffusion is economically significant, representing 47% of the knowledge flow premium associated with collocation. Furthermore, the effect is particularly strong for new knowledge, as well as in areas of satellite technological specialization. In addition, the results show that firms with stronger cross-location, intra-firm networks experience a larger satellite effect on knowledge diffusion. The second chapter studies the effects of remote satellites on outward knowledge flow with an international development focus. I find that the presence of a foreign MNC subsidiary increases the flow of knowledge from the MNC's headquarters to local firms. This effect is largest in countries and sectors with strong but not world-class capabilities, having both the motivation and absorptive capacity to learn from foreign parties. The results suggest that emerging country governments should promote inward FDI since the knowledge brought by multinationals spills over to local firms and boosts innovative capacity. The third chapter offers a theoretical foundation for thinking about the exchange of knowledge and ideas, and the role of remote satellites. I present a model where ideas are shared through social networks as modeled by repeated agent interactions. The mechanism at once explains three broad empirical findings: why the diffusion of ideas is highly localized, why ideas flow more easily within the firm, and why firms can access remote knowledge by establishing a presence in the remote location. A firm endogenously decides whether to establish a presence in a remote location and if so how much autonomy to award the remote agent. The relative importance of external vs. internal knowledge in the innovative process is a key determinant of the firm's organizational structure.