Abstract
The authors of the paper analyze factors which influence the way companies enter the international market: whether they invest into setting up their new branches on the territory of another country or prefer to take over existing companies. To answer this question the authors analyzed the representative sample of 1024 transactions with foreign direct investments in Russia for the period from 2008 to 2013. As the companies made a choice between two alternatives, a binary choice logit model was used for the research. The results analysis of the model showed that high tech industry companies generally preferred to take over existing companies operating on the territory of a foreign country. Also the variables which characterize the intensity of intangible assets and R&D investments proved to be of great importance. The variables have equally direct and strong influence in both advanced and developing countries but the change of parameters has a stronger influence in advanced countries. The research results allow us to assess what factors are more important while making a choice between setting up a new business abroad and taking over an existing company. They also help us understand the form of financial assets which are invested in the Russian economy and the way we can attract new investments in our country in general and its regions in particularly.
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