Corporate performance: does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal

Natália Barbosa () and Helen Louri ()
Additional contact information
Helen Louri: Athens University of Economics and Business

No 26, Working Papers from Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho

Abstract: The paper investigates whether multinational corporations (MNCs) operating in Portugal and Greece perform differently than domestic firms using two samples. The first contains 2651 and the second 523 firms operating in Greece in 1997 and Portugal in 1992 respectively. Departures from normality of firms' profitability motivated the adoption of the robust technique of quantile regression. The estimation results suggest that ownership ties do not make a significant difference with respect to performance of firms operating in Portugal. Results were similar for firms operating in Greece and only when firms in the upper quantiles of gross profits were compared, MNCs were found to significantly perform better than domestic firms. It is probably because MNCs have to compensate for their liability of foreigness that in spite of their technological advantages they cannot persistently outperform their domestic rivals.

Keywords: multinational corporations; profitability; manufacturing industry Quantile Regression (search for similar items in EconPapers)
JEL-codes: F23 L10 L60 C21 (search for similar items in EconPapers)
Date: 2003-10
View list of references

Downloads: (external link)
http://nima.eeg.uminho.pt/publications/169.pdf full text (application/pdf)
none

Related works:
Journal Article: Corporate Performance: Does Ownership Matter? A Comparison of Foreign- and Domestic-Owned Firms in Greece and Portugal (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nim:nimawp:26

Ordering information: This working paper can be ordered from
Universidade do Minho, Escola de Economia e Gestão Gualtar, 4710-057 Braga,Portugal
http://nima.eeg.uminho.pt/

The price is free.

Access Statistics for this paper

More papers in Working Papers from Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho
Address: Universidade do Minho, Escola de Economia e Gestão Gualtar, 4710-057 Braga,Portugal
Series data maintained by Lurdes Monteiro ().