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Schedule UTP requires that firms disclose to the IRS the uncertain tax positions that comprise the federal portion of the tax reserve disclosed on their financial statements. To investigate whether Schedule UTP has been an effective audit tool to the IRS, we use financial statement disclosures of reductions in reserves due to a lapse in the statute of limitations (Lapse). We find that the probability of a Lapse is 3.4 percent lower after Schedule UTP. However, this result is driven by domestic firms; we do not find evidence that Schedule UTP has been effective in the audit of multinational firms.

This study aims to determine how and through what mechanisms the outward foreign direct investment (OFDI) promotion effect of the Belt and Road initiative (BRI-OFDI) affects domestic investment. It is motivated by the context that China is fostering a new development pattern, as well as by the impetus from the Belt and Road initiative for the new pattern.

Drawing on data of Chinese-listed companies, this study uses a difference-in-difference method to explore the effect of the BRI-OFDI on domestic investment and a mediation model to illustrate the mechanisms.

The BRI-OFDI has a significantly positive effect on domestic investment, meaning that the Belt and Road initiative's OFDI promotion effect crowds in domestic investment. The results are heterogeneous: the crowding-in effect mainly exists in non-state-owned and technology-intensive enterprises, while a crowding-out effect is seen in state-owned and labor-intensive enterprises. The easing of corporate financing constraints and the expansion of market demand are two important mechanisms.

This study uses the Belt and Road initiative as an exogenous shock to investigate the impact of the initiative-induced OFDI promotion effect on domestic investment. It addresses the potential endogeneity issue confronting the studies on the relationship between OFDI and domestic investment in the literature. The authors focus on the possible spillover effects of the Belt and Road initiative discussing the impact of the BRI-OFDI on domestic investment from the micro-firm perspective. It offers a new perspective to objectively assess the initiative's policy effect.

Uses a conjectural variation approach to derive a general result concerning the equivalence of tariffs and quotas. Shows that, as long as the quota is binding, the equivalence of tariffs and quotas depends exclusively on the domestic firm′s conjectural variations. Specifically, the domestic prices of the goods under the quota are higher than, identical to, or lower than those under the tariff if the domestic firm′s conjectural variation under the quota is larger than, equal to, or smaller than that under the tariff. This conclusion holds for both price‐setting and quantity‐setting duopoly with heterogeneous goods as well as quantity‐setting duopoly with homogeneous goods.

This study focuses on the relationship between foreign direct investment (FDI) and economic growth of the formal sector comprising all foreign and domestic registered enterprises engaged in production of goods and services.

This study uses a balanced longitudinal data set for the period from 2006 to 2014 from secondary sources in 63 provinces/cities of Vietnam. The generalized method of moments (GMM) estimation for a dynamic panel data model is applied.

The greater the share of FDI in capital resource, the more favorable the output growth in the whole formal sector. The FDI enterprises are more productive than domestic formal firms, and the output growth of FDI firms creates a positive spillover effect on the output growth of domestic firms.

The effect of FDI on economic growth is investigated at subnational level for the whole formal economic sector as well as the formal domestic firms. The domestic and foreign industrial agglomerations and the business environment are also examined.

The purpose of this paper is to test the difference among foreign and domestic cosmetics firms in terms of types of strategic innovations they chose in the Chinese market, and the difference between domestic large-sized cosmetics firms and cosmetics small- to medium-sized enterprises (SMEs) about types of strategic innovation they choose in the Chinese market.

The independent-sample t-test was used to compare foreign and domestic cosmetics firms and domestic SMEs and large-sized cosmetics firms.

Foreign and domestic cosmetics firms should not choose the same type of strategic innovations, and it also showed that Chinese domestic large-sized firms and SMEs should not choose the same types of strategic innovations.

China is the exclusive place of focus. Only 19 types of strategic innovations were analyzed. There may be other variables that have not been addressed in the study.

Though other large-sized companies achieved considerable profitability or growth by using some types of strategic innovations, the same types may not contribute to the same profitability or growth for SMEs. Although foreign cosmetics companies had great growth and profitability in the Chinese market, domestic large-sized companies should not blindly follow them as their needs and situations are different.

From this t-test analysis, it is clear that foreign cosmetics firms and domestic cosmetics firms chose different types of strategic innovation in the Chinese market. Meanwhile, domestic large-sized cosmetics firms and SMEs chose different types of strategic innovation.

Foreign firms and domestic multinationals have certain internal advantages which may spillover to domestic firms. However, due to heterogeneity across multinationals, it is not necessary that the effect of the spillovers generated by the foreign firm and that generated by the domestic multinational be similar. The purpose of this paper is to empirically find out if the spillovers generated are similar or different in nature.

The study's results are based on a panel regression analysis of 578 firms in the Indian pharmaceutical industry from 1995‐2006. Fixed effects as well as the Levinsohn Petrin methodology are used to analyze the research question.

The paper finds that there are differences in the characteristics of foreign firms and Indian multinationals. It also finds differences in the research and development (R&D) spillover effects from foreign firms and those from Indian multinationals. The knowledge or R&D spillover effect of foreign firms on domestic firms is found to be negative, which is interpreted as movement of labor to foreign firms. Indian multinationals seem to have no spillover effect on domestic firms in the Indian pharmaceutical industry. The study also finds that the presence of foreign firms in the Indian pharmaceutical industry has not had a productivity hampering effect on domestic firms. Finally, the study finds some evidence to believe that spillovers in the Indian pharmaceutical industry may vary with size of the domestic firm.

There are very few papers in literature that empirically try to find similarity or differences between spillover effects due to foreign firms and those due to domestic multinationals. The study also tries to discern if these spillovers vary with respect to the size of the domestic firm.

The study is an attempt to analyze the impact of foreign direct investment (FDI) on research and development (R&D) behavior of incumbent firms’, both domestic and foreign, operating in Indian manufacturing sector. FDI inflows into the host country escalates the level of competition compelling domestic as well as existing foreign firms to adjust their spending on R&D. The purpose of this paper is to propose that response of domestic and existing foreign firms to the FDI entry vary, with domestic firms increasing their spending on R&D whereas foreign firms reducing it.

Using a rich firm level data set from Indian manufacturing for the period 2000-2012, the study utilizes Heckman’s two- step estimation strategy to estimate the impact of FDI entry on R&D behavior of incumbents.

FDI entry significantly increases the tendency of domestic and foreign firms to invest in R&D; however, the impact on R&D intensity for both domestic and foreign firms appears to be minimal.

The study contributes to the existing literature on two fronts. One, unlike other studies, it examines the impact of FDI entry not only on R&D behavior of domestic firms but also on the R&D behavior of existing foreign firms. Second, it addresses the problem of selection bias that has been largely ignored by majority of empirical studies on R&D.

Previous work in international business largely disregards the interplay between home-country conditions and firms’ geographical diversification – implying that, regardless of indigenous conditions, firms can modify their domestic performance (which the authors measure in terms of change in firms’ domestic productivity) merely by diversifying into international markets. The authors contest this view and argue that diversification does not substitute for home-country conditions. Rather, it moderates the baseline impact of home-country conditions on indigenous firms’ domestic performance. The purpose of this study is to describe these mechanisms and empirically examine their implications for indigenous firms’ performance.

The authors investigate the above model based on a 20-year longitudinal analysis of 600 observations involving telecommunication incumbents from 65 countries. They control for possible reverse causality between firms’ international diversification (and other firm-specific factors) and their domestic performance, and conduct several robustness checks.

The authors find – as hypothesized – that international diversification moderates the baseline performance impact of different home-country attributes in different ways. Such diversification does not have a uniform moderating effect on home-country attributes. In other words, the baseline effects of home-country conditions are altered as indigenous firms become more internationalized.

Theoretically, this work bridges the micro- and macro-level arguments that interweave strands from the competitive strategy and national competitive advantage literatures. By unpacking diversification’s role vis-à-vis the effect of upstream (home-country) conditions on firm performance, the authors attempt to shed light on the mechanisms that help (or hinder) indigenous firms’ performance. Empirically, this study helps to reconcile seemingly opposite views about whether and, if so, how much home-country conditions shape indigenous firms’ expansion after they have diversified internationally.

Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry.

This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function.

The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry.

The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework.

Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy.

In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws.

The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

The purpose of this paper is to assess the effect of financial derivatives use on different exposures by comparing domestic firms, domestic multinational corporations (MNCs) and affiliates of foreign MNCs using a unique hand-collected data set of derivatives activities from 881 non-financial firms in eight East Asian countries over the period of 2003-2013.

In this paper, the authors apply a two-stage approach. In the first stage, exposures to country risks, exchange rate and interest rate risks are estimated by using the market model. In the second stage, potential effects of firms’ derivatives use on multifaceted exposures are investigated by carrying out pooled regression model, and panel data regressions with random effect specifications.

The authors provide novel evidence that financial hedging of domestic firms and domestic MNCs reduces exposure to home country risks by 10.91 and 14.42 percent per 1 percent increase in notional derivative holdings, respectively, while affiliates of foreign MNCs fail to mitigate exposure to host country risks. The use of foreign currency and interest rate derivatives by domestic firms and domestic MNCs is effective in alleviating such firms’ exposures to varied degrees, while foreign affiliates’ use of derivatives can only lower interest rate exposures.

The primary theoretical contribution of this study is applying the market model to estimate exposures to home and host country risks. Regarding empirical contributions, the authors provide strong evidence that the use of financial derivatives by domestic firms and domestic MNCs significantly contributes to a decline in exposure to home country risks, and evidence the outperformance of domestic MNCs vis-à-vis domestic firms and foreign affiliates.