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Foreign and multinational ownership impact on firm exit: A sectoral analysis
Author(s) -
Silva Pedro,
Moreira António Carrizo
Publication year - 2021
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3326
Subject(s) - multinational corporation , portuguese , hazard model , sample (material) , business , hazard , foreign ownership , economics , demographic economics , foreign direct investment , macroeconomics , finance , linguistics , philosophy , chemistry , organic chemistry , chromatography
This article examines the impact of foreign and multinational ownership on firm exit using a sample of Portuguese firms for the period 2007–2016, with Kaplan–Meier survival functions and a Cox proportional hazard model. The results show that purely domestic firms endure worse survival prospects than multinationals, but this is more related to firm‐level variables and not because of the effects of foreignness or multinational ownership. The disaggregated results at a sectoral level provide support for the contingent role of foreignness in very specific sectors of the Portuguese economy.