@article{Alquist:297045,
      recid = {297045},
      author = {Alquist, Ron and Berman, Nicolas and Mukherjee, Rahul and  Tesar, Linda L.},
      title = {Financial constraints, institutions, and foreign  ownership},
      address = {2019},
      number = {ARTICLE},
      abstract = {We develop a model of cross-border acquisitions in which  the foreign acquirer's ownership choice reflects a  trade-off between easing the target's credit constraints  and the costs of operating in an environment with weak  institutions. Data on domestic and foreign acquisitions in  emerging markets over the period 1990–2007 support the  model predictions. The share of full foreign acquisitions  is higher in sectors more reliant on external finance, in  countries with lower financial development, and in  countries with higher institutional quality. Sectoral  external finance dependence accentuates the effect of  country-level financial development and institutional  quality. By contrast, the level of foreign ownership in  partial acquisitions is insensitive to institutional  factors and depends weakly on financial factors.},
      url = {http://repository.graduateinstitute.ch/record/297045},
      doi = {https://doi.org/10.17632/jt54zcm53c.1},
}