Legal enviroment and firm crisis: some evidence from the cross-border insolvency of the Italian foreign-owned firms
The issue of whether foreign-owned firms (FOFs) are more likely to exit the market than domestic firms (DOMFs) is highly debated in the political as well as in the academic field. The “footloose” character of multinational enterprises is justified by the fact that, as part of an international production network, these firms can easily relocate production between countries in response to adverse shocks in the host country or to changes in local costs. Through the optimal portfolio theory U.S.