Intangible assets of MNE foreign subsidiaries: the role of internal financial resources and host country institution

Nguyen, Q. T. K. ORCID: https://orcid.org/0000-0003-0179-3973 (2021) Intangible assets of MNE foreign subsidiaries: the role of internal financial resources and host country institution. In: Verbeke, A., Van Tulder, R., Rose, E. L. and Wei, Y. (eds.) The Multiple Dimensions of Institutional Complexity in International Business Research. Progress in International Business Research, 15. Emerald, pp. 263-285. ISBN 9781800432451 doi: 10.1108/S1745-886220210000015015

Abstract/Summary

We examine key factors which affect intangible asset holdings of foreign subsidiaries of multinational enterprises (MNEs). We develop our hypotheses by drawing upon the pecking order theory in the finance literature and the institution theory. We theorise that MNE foreign subsidiaries combine and utilize their cash holdings (finance-based firm-specific advantages - FSAs) with host country economic freedom (host country-specific advantages - CSAs) in their holdings of intangible assets which are internally created and/or purchased. We empirically test our hypotheses using a new original dataset of European subsidiaries of U.S. MNEs. We find that cash holdings and host country economic freedom share a significant and positive relationship with intangible asset holdings. We discuss the implications of our findings for theory and practice.

Item Type	Book or Report Section
URI	https://reading-clone.eprints-hosting.org/id/eprint/91281
Identification Number/DOI	10.1108/S1745-886220210000015015
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Emerald
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