• BENJALUX SAKUNASINGHA Mahidol University International College
  • Hikari Ishido Chiba University
  • Licheng Liang Keio University


Foreign direct investment, international investment, Mergers and Acquisitions, Intangible capital, cross border, FDI


This study explores finance-specific determinants that encourage domestic firms to receive foreign direct investment (FDI), especially those with a focus on mergers and acquisitions at the firm level, using firms operating in Thailand.  Three main objectives of this study: to analyse whether firms receiving FDI differ from those that do not; to identify significant finance-specific determinants that make Thai companies more likely to receive foreign investment; and to explore the heterogeneity at the firm level and the impact of financial constraints.  Our findings are: larger firms and younger firms draw more foreign attention and have a higher probability of receiving foreign investment, and companies with a larger amount of intangible assets attract more investment from abroad. The results point to the appropriate practical business policy of accumulating intangible assets with flexible formal/informal linkages with potential partners is key to promoting FDI.  For policy implication, the government in emerging economies could secure business environment for scaling-up of business operations so that FDI is further promoted; also, the government could facilitate nurturing of firm-level intangible assets. On managerial implications, business companies in emerging countries could act on such government policies to pursue scaling-up of business activities based on intra company intangible assets.


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