Blonigen, Bruce A.

Permanent URI for this collection

https://hdl.handle.net/1794/3685

Browse

Browsing Blonigen, Bruce A. by Subject "Financial economics"

Now showing 1 - 2 of 2
  • Thumbnail Image
    ItemOpen Access
    CEO Turnover and Foreign Market Participation
    (University of Oregon, Dept. of Economics, 2003-03) Blonigen, Bruce A.; Wooster, Rossitza B. (Rossitza Bouneva), 1971-
    Anecdotal evidence suggests that new CEOs with foreign backgrounds direct their firms to become more international in their operations. We examine this hypothesis formally using data on U.S. S&P-500 manufacturing firms from1992 through 1997 and biographical information on CEO's birth and education locations that allow us to identify changes from U.S.- to foreign-connected CEOs. Robust to a variety of specifications, we find that a U.S. firm's switch from a U.S. to a foreign CEO leads to substantial increases in the firm's proportion of its foreign assets and foreign affiliate sales. In fact, our preferred specification indicates that foreign asset and affiliate sales proportions increase 25 and 40%, respectively, for the five years after there is CEO turnover to one with a foreign background. This is in contrast to U.S.-to-U.S. CEO switches in our sample that show no evidence of changes in a firms' foreign market participation. These large effects contrast with previous literature that finds little evidence for changes in firm performance with CEO turnover.
  • Thumbnail Image
    ItemOpen Access
    Industrial groupings and foreign direct investment
    (University of Oregon, Dept of Economics, 2003-03) Blonigen, Bruce A.; Ellis, Christopher J.; Fausten, Dietrich
    We explore worldwide foreign direct investment location decisions by Japanese manufacturing firms from 1985 through 1991. Our conditional logit estimates provide evidence that firms’ location decisions are affected by membership in either vertical or horizontal keiretsu. Consistent with previous studies that stress agglomeration effects on firms’ location decisions, we find that the stock of investment in a region by a firm’s vertical keiretsu partners increases the probability of location. Further, we find that the recent flow of investment into a region by a firm’s horizontal keiretsu partners increases the probability of investment to the region, providing evidence of networking effects.