Striking a balance: Finance and accounting perspectives on international business research

Call for papers for: Multinational Business Review

Submission deadline: February 28, 2022

 

Guest Editors:

Igor Filatotchev        King’s College London, UK

Thomas Lindner       University of Innsbruck, Austria

Jakob Müllner          Vienna University of Economics and Business, Austria

 

What firms want to do strategically is a function of their internal resources and capabilities, as well as the cost of interactions in the market. Yet, what firms can do, and how they value the opportunities that present themselves, are largely a function of what they have on their balance sheets (Matsa, 2010; Teece, Pisano, & Shuen, 1997). The right side of the balance sheet, the source of capital, however, has long played a subordinate role in International Business (IB) literature (Lindner, Müllner, & Puck, 2016). Finance literature, which investigates the right side of firms’ balance sheets, at the same time, is largely disconnected from asset-focused IB research, even though it touches upon topics in the international domain (e.g., Chan et al., 1992; Doidge et al., 2013). Therefore, more research on the integration of finance and strategy research is called for (e.g., Puck & Filatotchev, 2020) to make use of the full scope of firm actions in deriving recommendations for firm strategy (Erel, Jang, & Weisbach, 2020).

Accounting for and taxing multinational companies’ (MNCs’) profits around the world is a substantial challenge. Accounting literature has made inroads into understanding profit shifting and tax evasion (De Simonis et al., 2017), and IB research has added perspectives on the role of global taxation has for MNCs’ contributions to government revenues (Kohlhase & Pierk, 2019). However, an integration of central theoretical perspectives on MNC management in global business activity, and their counterparts in accounting literature, is missing. Some insights regarding the link between national cultural traits and accounting topics exist (e.g., Kitching et al., 2016; Tran, 2020). The increasing relevance of MNCs for global value chains, and the flexibility in profit shifting in firms dominating global value chains, render an integration of IB and accounting perspectives on MNC activity critical (Foss et al., 2019). Similarly, research on global corporate governance will benefit from an integration of finance, accounting, and international business perspectives (e.g., van Essen et al., 2019; Yoshikawa et al., 2021)

Multinational Business Review invites the submission of theoretical and empirical studies that develop and link current finance and accounting research topics with IB literature. The special issue on “Striking a balance: Finance and accounting perspectives on international business research” will accept contributions originating from either of the finance, accounting, and IB research traditions, and encourages interdisciplinary submissions. Research topics may include the role of financial structure for MNC strategy, profit-shifting activities in MNCs, or the internationalization of capital markets. The wide scope of the Special Issue is an attempt to encourage research contributions that not only address hitherto unexplored issues within international business-related topics, but also provide an original framework which can challenge conventional approaches to international business research using rigorous methodologies developed in contemporary accounting and finance research.

Possible paper topics include, but are not limited to:

  • Current topics in managing and financing international business activities (e.g., Brexit, global protectionism, economic disintegration)
  • Governance and international finance (e.g., risk behaviour, agency cost)
  • Institutional context and international finance (e.g., liability of foreignness in capital markets, local financial context, legitimacy, isomorphism)
  • International capital structure and internal capital markets (e.g., diversification, international transfer pricing, arbitrage, taxation)
  • Ownership effects on internationalization (e.g., family ownership, institutional investors, sovereign wealth funds)
  • Financial risk management in internationalization (e.g., hedging, trade finance, risk reporting)
  • International strategic finance (e.g., listing location, location specific financial advantages, project finance, syndication)
  • Firm level issues in financing internationalization (e.g., SMEs, MNEs, EMNEs, born globals, export finance and FDI finance, joint ventures)
  • Integrating IB and Finance theories (e.g., TCE, RBV, OLI, real options, agency, and institutional theory).
  • The relationship between MNEs accounting practices, corporate governance and business strategy, including internationalisation strategy and Foreign Direct Investment (FDI)
  • The impact of ethical accounting in MNEs 
  • How do financial reporting attributes mitigate or exacerbate “foreign firm discount” and “home bias” in equity and debt markets?
  • What are the challenges auditors face in auditing MNEs, and how do they tackle these challenges? Does audit quality vary with culture, religion and trust?
  • Strategic, financial and managerial antecedents of the adoption of
    • national accounting practices
    • international accounting practices
    • voluntary reporting practices (ESG, CSR)
  • Strategic, financial and managerial consequences of the adoption of
    • national accounting practices
    • international accounting practices
    • voluntary reporting practices (ESG, CSR)
  • Cross-country
    • determinants of accounting standards’ compliance
    • differences in financial and of accounting practices
    • mobility, diffusion and enforcement of accounting practices
    • capital market risks and opportunities (debt, equity, internal external)
    • accounting strategies (transfer pricing, tax avoidance)

 

Papers should be submitted electronically to MBR according to the instructions which can be found by following the links at: https://mc.manuscriptcentral.com/tmbr. Authors need to select the Special Issue from the dropdown menu in Manuscript Central in order for submissions to be considered for the SI.

Authors should consult the MBR home webpage and conform to the required format for submission. All papers will be refereed according to the usual practices of the journal and the first review will be completed within 90 days of the receipt of the manuscript. The deadline for submission is 28 February 2022.

Upon submission of a revised version, the special issue editors will invite authors of papers in the review process for the special issue to a paper development conference that is provisionally planned for September 2022. Acceptance to the conference does not guarantee acceptance into the special issue. The SI is scheduled to be published in 2023.

 

References

Chan, K. C., Karolyi, G. A., & Stulz, R. (1992). Global financial markets and the risk premium on US equity. Journal of Financial Economics, 32(2), 137-167.

De Simone, L., Klassen, K. J., & Seidman, J. K. (2017). Unprofitable affiliates and income shifting behavior. The Accounting Review, 92(3), 113-136.

Doidge, C., Karolyi, G. A., & Stulz, R. M. (2013). The US left behind? Financial globalization and the rise of IPOs outside the US. Journal of Financial Economics, 110(3), 546-573.

Erel, I., Jang, J., & Weisbach, M. S. (2021). The corporate finance of multinational firms. In: Global Goliaths: Multinational Corporations in the 21st Century Economy (Chapter 5). Eds.: Foley, F., Hines, J., & Wessel, D. Washington DC: Brookings Institution Press.

Foss, N. J., Mudambi, R., & Murtinu, S. (2019). Taxing the multinational enterprise: On the forced redesign of global value chains and other inefficiencies. Journal of International Business Studies, 50(9), 1644-1655.

Kitching, K., Mashruwala, R., & Pevzner, M. (2016). Culture and cost stickiness: A cross-country study. The International Journal of Accounting, 51(3), 402-417.

Kohlhase, S., & Pierk, J. (2020). The effect of a worldwide tax system on tax management of foreign subsidiaries. Journal of International Business Studies, 51, 1312-1330.

Lindner, T., Muellner, J., & Puck, J. (2016). Cost of capital in an international context: Institutional distance, quality, and dynamics. Journal of International Management, 22(3), 234-248.

Matsa, D. A. (2010). Capital structure as a strategic variable: Evidence from collective bargaining. The Journal of Finance, 65(3), 1197-1232.

Puck, J., & Filatotchev, I. (2020). Finance and the multinational company: Building bridges between finance and global strategy research. Global Strategy Journal, 10(4), 655-675.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

Tran, Q. T. (2020). Uncertainty avoidance culture, cash holdings and financial crisis. Multinational Business Review, 28(4), 549-566.

van Essen, M., Heugens, P. P., Duran, P., Saleh, S. F., Sauerwald, S., van Oosterhout, H., & Xie, E. (2019). How concentrated owners improve the performance of Asian firms: Filling voids or imposing effective governance? Multinational Business Review, 28(1), 39-63.

Yoshikawa, T., Nippa, M., & Chua, G. (2021). Global shift towards stakeholder-oriented corporate governance? Evidence from the scholarly literature and future research opportunities. Multinational Business Review, forthcoming: https://doi.org/10.1108/MBR-10-2020-0200.

 

Special Issue Editors

Igor Filatotchev ([email protected]) is Vice Dean and Professor of Corporate Governance and Strategy at King’s Business School, King’s College London, and visiting professor at the Vienna University of Economics and Business. He earned his Ph.D. in economics from the Institute of World Economy and International relations (Moscow, the Russian Federation). His research interests are focused on corporate governance effects on entrepreneurship development, strategic decisions and organizational change. Key research programs currently in progress include analysis of resource and strategy roles of corporate governance; corporate governance life-cycle; and a knowledge-based view on governance development in entrepreneurial firms and IPOs. His research has appeared in Academy of Management Journal, Strategic Management Journal, Journal of International Business Studies, Journal of Management Studies, Organization Science, Journal of Management, European Journal of Finance, European Accounting Review and Journal of Corporate Finance. He has served as a Guest Editor of special issues of Journal of Management Studies, Journal of International Business Studies, International Business Review, Management International Review, and Journal of Corporate Finance. Currently, he is the Senior Editor of Oxford Research Encyclopaedia (Business & Management).

 

Thomas Lindner ([email protected]) is a Professor of International Management at University of Innsbruck (Austria). Thomas also holds a visiting professor position at WU Vienna, and works as lecturer at the Copenhagen Business School as well as Audencia Nantes Business School. Thomas was an assistant professor at the Institute for International Business at WU Vienna, and a visiting assistant professor at NYU Stern before joining University of Innsbruck. Thomas’ research covers strategy, international finance and research methods. In strategy, he investigates the interaction between government policy and firm strategy, post-internationalization behavior of firms, and organizational responses to liabilities of foreignness. His research in international finance deals with capital structure in international firms, valuation of cross-border bond issues, and project finance. Thomas also works on research methods for international business and applications of artificial intelligence in multinational companies. His research has been published in the Academy of Management Journal, International Business Review, Journal of International Business Policy, Journal of International Business Studies, Journal of International Management, and the Journal of World Business.

 

Jakob Müllner ([email protected]) is Associate Professor at the Institute of International Business at WU-Vienna. His research seeks to integrate finance and international business perspectives. It focuses on financing international business and financial risk management strategies in internationalization. He published in ABS 4 ranked journals in the disciplines International Finance, International Business and Management (e.g. Academy of Management Journal, Journal of Corporate Finance, Journal of World Business). He was nominated for Haynes Prize for most promising scholar (AIB), the Carolyn B. Dexter Award (AOM), the Alan Rugman Young Scholar Award (AIB) and received the Distinguished Paper Award from the Academy of Management Strategy Division in 2019. Jakob Müllner serves as track chair for International Finance, Accounting and Corporate Governance in the European International Business Association (EIBA) and co-founded the annual WU-Vienna IB & Finance Paper Development Workshop.