IBS Departmental Research Meeting - Uncertainty and divestment in foreign countries

You are cordially invited to attend an IBS Departmental Research Meeting, during which there will be a presentation by Dr Ricardo Marzano, Sapienza University of Rome. Ricardo is also one of the Dunning Fellows for 2023-24. A reminder that attendance for IBS (full time, research oriented) staff and full-time students is compulsory, and where possible, must be in person. Individuals unable to attend in person, due to legitimate reasons will be provided a Teams link on request. Non-IBS staff are welcome to attend, but must register prior to the event. If you have not received the email invite please email Angie Clark.

Please join us in Room 108, Henley Business School, if you would like to attend, please register using the link below:

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Please make sure you let me know in advance if you intend to attend in person so that the correct amount of catering is booked.

Title: Uncertainty and divestment in foreign countries

Presenter: Dr Ricardo Marzano, Sapienza University of Rome

Date: Wednesday 27^th September 2023

Time: 13.00 – 14.15 pm

Abstract

The divestment of foreign subsidiaries by multinational enterprises (MNEs) has recently garnered increased attention in the international business (IB) literature. However, among the country-specific factors that may influence the decision of MNEs to divest, uncertainty has surprisingly been overlooked. In this study, we aim to fill this gap by utilizing data related to 3,820 foreign investments that led to the establishment of new manufacturing subsidiaries by Italian firms between 1996 and 2018. Our findings indicate that the likelihood of divestment rises in the presence of country-level uncertainty, and this effect varies depending on investment characteristics, firm ownership, and the motive for divestment.