Investing in conflict zones: a firm-level analysis

摘要: The purpose of this paper is to examine, using panel data econometric techniques, the determinants a firm’s strategy invest in conflict location. To best our knowledge has not been done before. We use large database firm-level that includes 2858 multinational firms have subsidiary developing country (during 1999-2006). Out these 290 are classified as having choice location based on from Inter Country Risk Guide (ICRG). start with population multinationals who chosen low income countries weak institutions. Our analysis then proceeds explain decision those locations. four hypotheses: (1) Firms concentrated ownership more likely region; (2) weaker institutions regions; (3) and Countries less concern over corporate social responsibility countries; (4) there sector level differences propensity region. results suggest all hypotheses can be confirmed.