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The Propensity of Multinational Companies to Expand Through Acquisitions

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Abstract

Multinational enterprises may choose to invest internationally through a newly formed subsidiary or by acquiring an existing company. In an attempt to isolate factors which might indicate a propensity to acquire rather than form subsidiaries, this study examined the characteristics of firms which have invested abroad. The results showed that firms with a higher percentage of investments through acquisitions did have some common characteristics. In addition, the nationality of the parent was found to be related to the propensity to acquire.

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*Brent D. Wilson is currently a faculty member of the Colgate Darden Graduate School of Business Administration at the University of Virginia. He holds degrees from Weber State College, Northwestern University, and Harvard University. He has previously served on the faculties at Boston University, Simmons College, and Cleary College in addition to working for the Ford Motor Company.

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Wilson, B. The Propensity of Multinational Companies to Expand Through Acquisitions. J Int Bus Stud 11, 59–64 (1980). https://doi.org/10.1057/palgrave.jibs.8490596

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490596

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