Factors to Increase Equity Capital Investment in Foreign Subsidiaries

This work seeks to offer a model of the most critical factors that influence the decision to expand an existing foreign subsidiary. As little research addresses the topic in depth the main goal is to further increase explanatory power of the existing economic theories and to derive practical implications for managers. Through the inclusion of factors such as the home country performance and their influence on foreign capital investments the paper aims to reduce the gap in the available literature. Lastly the consideration of the years of economic recovery which occurred after the financial crisis of 2008 will add another valuable dimension for theory and practice.