Abstract
This paper identifies key factors that determine the profitability of Indian firms abroad by using panel-data regression models on new, large-scale, subsidiary-level data over the 2009-2015 period. The results show that the determinants of subsidiary profits differ across host regions, suggesting that the economic and institutional factors specific to host regions influence significantly the profit performances of overseas subsidiaries. While the size effect on the subsidiary profitability is present in all the regions, other effects, such as experience, local supplier networks, local sales and macroeconomic conditions affect the performance of subsidiaries in a different manner by region.
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More From: International Journal of Asian Business and Information Management
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