ABSTRACT
This chapter examines the rise of foreign ownership in France and Germany. I argue that the fi rm-level institutional arrangements of workplace organization constitute the most signifi cant variable to account for the greater attractiveness of French fi rms over their German counterparts to short-term, impatient capital-namely, hedge and mutual funds. I demonstrate how key notions of the Varieties of Capitalism perspective-institutional interaction, institutional latency, and the distinction between institutional framework and the mode of coordination that follows from these institutions-provide important theoretical insights to account for the different structures of foreign ownership in France and Germany.
