Prof.  JEOUNG  YUL LEE
Hongik University,  Republic of Korea

Title: Economic Downturn, Operational Flexibility, and Foreign Subsidiary Divestment

Abstract:

This study examines how operational flexibility affects the likelihood of a multinational corporation’s (MNC’s) foreign subsidiary divestment. We argue that while host country economic downturn is positively associated with the likelihood of an MNC’s foreign subsidiary divestment, the MNC’s operational flexibility weaken this positive association. We find support for our arguments using a dataset of 511 Korean MNCs and event history analysis.

Biography: