Profitability and Ownership Structure of US Ventures Abroad : Why Are Majority-Owned Affiliates More Profitable Than Other US Affiliates ?

@inproceedings{GomesCasseres2007ProfitabilityAO,
  title={Profitability and Ownership Structure of US Ventures Abroad : Why Are Majority-Owned Affiliates More Profitable Than Other US Affiliates ?},
  author={Benjamin Gomes-Casseres and Mauricio Jenkins and Peter Z{\'a}mborsk{\'y}},
  year={2007}
}
This paper explores a striking empirical pattern that has gone unnoticed in the literature: U.S. multinationals’ majority-owned ventures abroad are substantially and systematically more profitable than their minority-owned and 50-50 joint ventures. On average, majority-owned foreign affiliates in manufacturing earned a 6.4% return on assets in 1977-2003… CONTINUE READING