An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory

Giacobbe, F; Matolcsy, Z; Wakefield, J

An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory

Giacobbe, F Matolcsy, Z

Wakefield, J

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Publication Type:: Journal Article
Citation:: Accounting and Finance, 2016, 56 (4), pp. 1041 - 1070
Issue Date:: 2016-12-01

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Field	Value	Language
dc.contributor.author	Giacobbe, F	en_US
dc.contributor.author	Matolcsy, Z https://orcid.org/0000-0001-6566-5079	en_US
dc.contributor.author	Wakefield, J https://orcid.org/0000-0001-7269-0141	en_US
dc.date.available	2020-05-25T19:25:35Z
dc.date.issued	2016-12-01	en_US
dc.identifier.citation	Accounting and Finance, 2016, 56 (4), pp. 1041 - 1070	en_US
dc.identifier.issn	0810-5391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/63843
dc.description.abstract	© 2015 AFAANZ This paper investigates the management control systems used by multinational corporation headquarters to control wholly-owned foreign subsidiaries. Our theory development is based on transaction cost economics. First, we conduct a series of exploratory interviews, providing an insight into the context, and second, we provide empirical evidence based on cross-sectional survey data. Our results indicate that activity traits (uncertainty, asset specificity and post hoc information impactedness) have significant implications on control choices, in particular the control archetype combinations chosen by headquarters, although not all results are consistent with theory predictions. Our findings are supported by extensive alternative testing.	en_US
dc.relation.ispartof	Accounting and Finance	en_US
dc.relation.isbasedon	10.1111/acfi.12118	en_US
dc.subject.classification	Accounting	en_US
dc.title	An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	56	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	56	en_US

Abstract:

© 2015 AFAANZ This paper investigates the management control systems used by multinational corporation headquarters to control wholly-owned foreign subsidiaries. Our theory development is based on transaction cost economics. First, we conduct a series of exploratory interviews, providing an insight into the context, and second, we provide empirical evidence based on cross-sectional survey data. Our results indicate that activity traits (uncertainty, asset specificity and post hoc information impactedness) have significant implications on control choices, in particular the control archetype combinations chosen by headquarters, although not all results are consistent with theory predictions. Our findings are supported by extensive alternative testing.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/63843