Review of Industrial Organization

, Volume 27, Issue 1, pp 73–102

Corporate Performance: Does Ownership Matter? A Comparison of Foreign- and Domestic-Owned Firms in Greece and Portugal



The paper investigates whether multinational corporations (MNCs) operating in Portugal and Greece perform differently than domestic firms. Departures from normality of firms’ profitability motivated the use of quantile regression. The results suggest that ownership ties do not make a significant difference with respect to performance of firms in Portugal. Results are similar for firms in Greece. Only when firms in the upper quantiles of gross profits are compared, MNCs are found to significantly perform better than domestic firms. MNCs have to compensate for their liability of foreigness that in spite of their technological advantages they cannot persistently outperform domestic rivals.


Manufacturing industry quantile regression multinational corporations profitability 


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Copyright information

© Springer 2005

Authors and Affiliations

  1. 1.Escola de Economia e GestãoUniversidade do MinhoBragaPortugal
  2. 2.Athens University of Economics and BusinessAthensGreece

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