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


vendredi 14 décembre

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

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.