Kim, SeungjunThis dissertation demonstrates that in a highly integrated global economy, state-business relationships have significant value for cross-border investors. The first paper shows that the governments of developed countries establish international investment agreements to protect their firms’ existing international investments. The second paper reveals that these home-country governments further support their firms’ international investments by supplying them with financing through state financial institutions. The third paper builds on the assumption that political relationships increase corporate value; therefore, domestic portfolio stock investors, unlike their foreign counterparts, are able to increase their returns by investing in politically-connected firms. The broad lesson from this series of papers is that governments can increase their firms’ profits abroad and that such increases are experienced primarily by the largest firms.enDissertationPolitical scienceCrony CapitalismForeign Direct InvestmentInternational Investment AgreementsState Financial BackingState-Business ConnectionsStock Portfolio Investments