Analyzing the reliability of Chinese outward FDI studies: a replication approach

Purpose Many academic studies in international business empirically test the determinants of Chinese outward (O)FDI. A weakness with these studies is the limited critical evaluation given to the way in which Chinese OFDI data is collected and used. Chinese multinational enterprises (C)MNEs frequently establish special purpose entities in tax havens to transit FDI via intermediary jurisdictions. The purpose of this paper is to develop an alternative approach for measuring CMNE OFDI and subsequently explore how the results of previous studies may have been confounded use of tax havens by MNEs. The authors address the latter question by replicating widely cited quantitative studies. Design/methodology/approach Replication approach. Findings Through the replication of several studies, this paper finds high levels of discrepancies in general sign and significance between global ultimate ownership modeling results and those using officially recorded FDI data. More specifically, the main areas impacted by using official data rather than data which accounts for the use of tax havens are cultural proximity, geographic distance and natural resource seeking. Practical implications This paper looks at studies, which use official FDI data to understand CMNE behavior. It is important to note, however, that there are many hundreds, if not thousands, of studies that use other national-level FDI data to draw similar types of inferences about MNE activity. In this sense, the authors’ critical evaluation of CMNE work holds a much broader and, arguably, more important question: How reliable, in general, are studies, which use officially recorded FDI data? The results from this paper have already caused reflection on the impact of tax haven use on official FDI collection organizations, such as the OECD. Social implications The social implications of companies using tax havens to route FDI is immense. The use of tax havens not only aids in tax minimization for companies, but also obscures the true providence and identity of companies. This is problematic in a society, which increasingly desires to understand where, how and by whom a product or service was created prior to consumption. Originality/value This paper argues that the tendency for Chinese MNEs to establish offshore holding companies in tax havens has given rise to significant biases in official FDI statistics. Through the use of global ultimate ownership data, the authors have put forward an alternate approach to measure genuine CMNEs’ OFDI activity, one which confronts and deals with their pervasive engagement with tax havens. Through the replication of several Chinese OFDI location choice studies, it was possible to understand how methodological issues stemming from the use of official FDI data may influence prior econometric results. In doing so, the authors hope to have sparked a debate which may lead to a re-evaluation of earlier received wisdom regarding Chinese MNE investment strategy and behaviors. This in turn should foster improved theorizing regarding the Chinese MNE and its outward investment activities.

PENGARUH KEPEMILIKAN ULTIMAT TERHADAP NILAI PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

<p class="Default"><em>The objective of this research is to analyze the influence of ultimate ownership on firm’s value of companies listed in indonesia stock exchange</em><em>.</em><em> </em><em>Ultimate ownership is proxied by cash flows right and cash flows right leverage of the ultimate owner, while firm value is measured using Tobin’s Q. </em><em>Sample of this research </em><em>are</em><em> </em><em>117 companies which are listed in Indonesia Stock Exchange </em><em>with the study period </em><em>of </em><em>2015</em><em> </em><em>which are chosen by using purprosive sampling method. </em><em>Multiple regression and hypotheses testing are used as the data analysis method in this research.</em><em> </em><em>The result of this research shows that </em><em>cash flows right does not have influence on firm’s value, while cash flows right leverage has positive influence on firm’s value.</em></p>

International Development Law: Resolving the Contentious Question of State Sovereignty and Right to and Ownership of Natural Resources

This work came up against the background of the contentious question and multiplicity of claims of ownership of natural resources located within a given state territory. The paper has addressed the question whether this claim legitimately inheres in the state as a sovereign or in the native inhabitants of the land area where the mineral resources are domiciled pursuant to the international right to self-determination. It is the finding that, among other things, the right to permanent sovereignty over natural resources is a legitimate one in international law. Notwithstanding, as the paper has concluded, only the legislature and the courts in any particular domestic jurisdiction can determine with finality the specific entity, institution, or unit within a state sovereign in whom this ultimate ownership resides.