【公开学术报告】The Domestic Effect of International Institutions: Evidence from the International Investment Regime

The Domestic Effect of International Institutions: Evidence from the International Investment Regime

Guest Speaker:    Si Cheng (ESSEC)

Date & Time:  14:00-15:30 (Beijing Time), Tue. 28th, Nov. 2023

Zoom Meeting: 92345123720（Password: 451762）

Click the Link: https://zoom.us/j/92345123720

 ABSTRACT

How do firms assess their institutional environments? Beyond domestic cues, we examine the role of international institutions. In the global investment treaty regime, some firms bring legal claims against sovereign states in international venues for alleged property rights violations. Rulings by international tribunals in favor of (against) the state may be perceived as a challenge to (or affirmation of) firms’ property rights or a symbol of legitimate (illegitimate) state behavior. We compare domestic firms’ assessment of their institutional environment shortly before versus after a tribunal ruling to obtain (quasi-) random variation in firms’ exposure to international institutions. Analyzing 14,338 firm responses across 16 countries, we find support for the legitimating effect. Domestic firms assess their institutional environment more (less) favorably following a pro-state (pro-firm) ruling.

Keywords: institutional environment, firm perception, domestic and multinational firms, international institutions, investment treaties