Laboratoire d’Etude et de Recherche sur l’Economie, les Politiques et les Systèmes Sociaux

Publication

vendredi 14 décembre

François Fall vient de publier "Foreign Ownership, Investment and Performance of Enterprises in Africa : Case of Cameroon" in Management International

Résumé
This paper analyzes the relationship between foreign ownership, investment and firms performance in a Sub-Saharan context, based on a sample of 168 Cameroonian firms in the period 2007-2009. To control for the endogeneity issue revealed by our analysis, we estimate a simultaneous equations model that is known to give more robust results than usual models. We find that foreign ownership has a negative effect on firm’s assets return, while positively related to investment. However, the results show a non-linear relationship : when foreign equity is above 25%, foreign ownership is positively related to assets return, and negatively related to investment.