Firms' ownership and internationalisation: is it context that really matters?

This paper considers the potential role played by different kinds of shareholders in a firm’s international level, distinguishing the firms quoted in the UK from those listed in the countries of Continental Europe (France, Germany, Italy, Poland and Spain). Our results confirm that different kinds of ownership affect the overall level of a firm’s internationalisation. Family ownership has a negative impact on foreign sales in the UK but not in Continental Europe, while bank ownership has a negative impact on the scope of FDI in Continental Europe but no impact whatsoever in the UK. Institutional investors positively impact the scope of both foreign sales and FDI in the UK, while in Continental Europe they have a negative impact on foreign sales. These different results contribute to explaining why previous studies that have focused on just one country or a single measurement of internationalisation have come up with such contrasting results.