Who's Afraid of Foreigners? Religion, Trust, and Directors in Multinational Corporations

39 Pages Posted: 22 Dec 2006

See all articles by Marc Deloof

Marc Deloof

University of Antwerp; University of Antwerp - Antwerp Management School

Catherine Campo

Independent

Date Written: January 2006

Abstract

For a sample of 781 Belgian subsidiaries of multinational corporations (MNCs) from 13 different countries, we investigate how religion and trust in the parent country of the MNC affect the likelihood that the board of directors of the Belgian subsidiary includes parent country nationals, and the likelihood that the managing director of the subsidiary is a parent country national. Consistent with our hypotheses, we find that the likelihood of parent country (managing) directors is greater if the parent company is located in a Catholic country, a country where interpersonal trust is lower, or a country characterized by higher power distance.

Keywords: religion, trust, national culture, multinational corporations, subsidiary control, board of directors

JEL Classification: F23, G34, M14

Suggested Citation

Deloof, Marc and Campo, Catherine, Who's Afraid of Foreigners? Religion, Trust, and Directors in Multinational Corporations (January 2006). Available at SSRN: https://ssrn.com/abstract=953248 or http://dx.doi.org/10.2139/ssrn.953248

Marc Deloof (Contact Author)

University of Antwerp ( email )

Prinsstraat 13
Faculteit TEW
Antwerpen, 2000
Belgium
+32 3 265 41 69 (Phone)
+32 3 265 47 99 (Fax)

HOME PAGE: http://https://www.uantwerpen.be/en/staff/marc-deloof/

University of Antwerp - Antwerp Management School ( email )

Boogkeers 5
Antwerp, 2000
Belgium

Catherine Campo

Independent ( email )

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