000			02908cam a22003857 4500
001			w25933
003			NBER
005			20211020104130.0
006			m o d
007			cr cnu||||||||
008			210910s2019 mau fo 000 0 eng d
100	1		_aBlonigen, Bruce A. _96435
245	1	0	_aEvidence for the Effect of Monitoring Costs on Foreign Direct Investment / _cBruce A. Blonigen, Anca D. Cristea, Donghyun Lee.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2019.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w25933
500			_aJune 2019.
520	3		_aA proposed reason for the significant inverse relationship between distance (both physical and cultural) and foreign direct investment is the increased costs for a parent firm to monitor an affiliate when there is greater distance between them. We provide the first direct test of this hypothesis using O*NET data on occupational skills to construct industry-level measures of the importance of monitoring-related skills. We then exploit this cross-industry variation to examine whether physical and cultural distances have a greater impact on cross-border M&A in industries where monitoring-related skills are more important. Using data on worldwide cross-border M&A activity from 1985 through 2014, we find significant evidence for the effect of monitoring costs on cross-border M&A activity. We also show that the relatively low importance of monitoring-related costs in manufacturing industries compared to those in other sectors is an important factor in explaining why cross-border M&A in manufacturing is so large despite its relatively small share of the modern economy.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD22 - Firm Behavior: Empirical Analysis _2Journal of Economic Literature class.
690		7	_aF21 - International Investment • Long-Term Capital Movements _2Journal of Economic Literature class.
690		7	_aF23 - Multinational Firms • International Business _2Journal of Economic Literature class.
690		7	_aG34 - Mergers • Acquisitions • Restructuring • Corporate Governance _2Journal of Economic Literature class.
690		7	_aL22 - Firm Organization and Market Structure _2Journal of Economic Literature class.
700	1		_aCristea, Anca D.
700	1		_aLee, Donghyun.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w25933.
856	4	0	_uhttps://www.nber.org/papers/w25933
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w25933
942			_2ddc _cW-PAPER
999			_c322189 _d280751