Abstract
In certain locations, foreign investors frequently use partial acquisitions (PAs) to access locational advantages controlled by local firms. This chapter aims to explain the use of PAs as a mode of entry in emerging economies, based on two unique samples of foreign direct investments in transition economies and a review of recent entry mode literature. Theoretical considerations and empirical data show that PAs are insufficiently explained by combining arguments for acquisitions (viz Greenfield) and for joint ventures (viz wholly-owned subsidiary). We thus challenge some of the assumptions and assertions of recent entry mode research. In particular, reverse asymmetric information effect may override buyers’ informational disadvantages. Thus, PAs are often desired by sellers to attain a share in the expected increase of the firm’s value. JEL classification: F21, F23, L22
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
