Liability of Foreignness in Metals and Mining Companies in Brazil
Igor Matos Bueno et al.
What the paper says
This research evaluates the liability of foreignness (LOF) in metals and mining companies in Brazil by comparing the financial performance of foreign and local firms. The study also tests if the increase in the psychic distance index (PDI) reduces the performance of foreign companies. We estimated panel data regression models for a sample of 78 companies (29 multinationals in Brazil). Even though the performance differences between mining foreign companies and local ones are not significant, there is evidence that foreign firms face LOF and we confirmed a negative relationship between PDI and the performance of foreign metals and mining companies.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.00 × 0.4 = 0.00 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.