Foreign Investment Companies Research Articles

Foreign Direct Investment and Consumer Finance Companies: What Are the Determinants?

In the context of the globalization of the financial sector, notably of the non-banking sector within the European Union member states of the last decades, the assets of the non-bank sector have increased in the last years considerably. Taking into account that the regulatory requirements for consumer finance companies are more permissive than for banking financial institutions and that the financials of the sector are not available for almost half of the sector this paper tries to explain the main determinants of foreign direct investments in consumer finance companies for a panel of European Union member states over the period 2006-2013. My approach is using the panel methodology but testing different panel specifications in order to choose the model that will better explain FDI – fixed effects. Findings show that the percentage of people with internet connection, the quality of the regulatory environment, the trade to GDP, the cost of business start-up procedures, the time required to start a business, the government final spending and the labour costs are the major determinants of foreign investments in consumer finance companies.
 Keywords: consumer finance companies, foreign direct investment, non-bank financial sector, multinationals, panel data.

A Corpus Based Study on Cross Cultural Adaption of Websites of Foreign-Invested Enterprises in Heilongjiang Province

Under the macro-environment of “The Belt and Road Initiative”, Heilongjiang province receives more foreign investment since 2013. This paper endeavors to collect website information of foreign-invested companies in Heilongjiang province and Heilongjiang local companies and build two corresponding corpuses. After analyzing data by using WMATRIX 4 tool, the author selects semantic clouds under the framework of Singh’s website content. Then after comparing data of Heilongjiang local companies and foreign invested companies in Heilongjiang province, the author tries to explain the data from Hofstede’s cultural dimensions, namely, individualism vs. collectivism, power distance, uncertainty avoidance and femininity vs. masculinity. Then suggestions on the website building to adapt to the local culture have been made. The study makes a useful attempt to explore the effectiveness of business communication across disciplines by using linguistic research perspectives and research methods.

A Study on China’s Five-Year Economic Plan

Purpose - This study is to understand China’s economic development process by analyzing the successful aspects of China’s Five-Year Economic Plan. Design/methodology/approach-This study suggests the implications of Chinese economy focusing on China’s literature materials and researches on Five-Year Economic Plan. Findings-Since its founding in 1949 China has begun to establish and implement the first five-year economic plan (1953 ~ 1957). The Great Leap Forward of the late 1950s and the Cultural Revolutionary Movement in the late 1960s had tragic consequences. After the reform and opening up in 1978, capitalism was introduced, and through the continuous implementation of the five-year economic plan combined with the socialist market economic system China has become the second largest economic power in the world thanks to rapid economic development. China has carried out a preemptive policy that develops the eastern coast region first and spread it throughout the country from 1978. Meanwhile, the five-year economic plan promoted incentives such as designating special economic zones, controlling wages, and providing tax incentives to foreign-invested companies. As a result, foreign-invested companies have utilized this to form a virtuous cycle of the economy, including increasing exports, creating a domestic consumer market, and upgrading industrial structures. Research implications or Originality - In particular, China’s 13.5 plan and China Manufacturing 2025 set an ambitious goal to be the world’s strongest country in 2049 which is the 100th anniversary of its founding. Accurate understanding of the implementation of the five-year economic plan by the Chinese government is crucial to understanding China’s economic policy, reform and construction.

Foreign Direct Investment and Total Factor Productivity Growth Nexus: A Realistic Testimony from VECM Approach

The main focus of current paper is to investigate the effect of foreign direct investment (FDI) on growth of total factor productivity (TFP) of Sierra Leone using financial development (FD) and trade openness (TR) as intermittent variables for the period 1990-2016. Further, this paper intends to identify the direction of causal affiliations amid employed series. Base on the application of ADF and PP-Fisher unit root tests as well as JJ co-integration tests respectively, all variables used are stationary at the first difference and also co-integrated. Through the estimation a proposed TFP model using the VECM framework, FDI is evidenced to have a significant positive effect on TFP when all other factors are held constant. Findings from the Granger causality test further revealed unidirectional liaison from FDI to TFP in the long-run whilst bidirectional causality is evidenced in the short-run. We therefore conclude that in order to increase the positive externalities and spillover benefits of FDI at the corporate level, Sierra Leone could provide assistance to foreign investment companies in management and worker training.

PERLINDUNGAN HUKUM BAGI PENANAMAN MODAL ASING (PMA) DI INDONESIA

The existence of Foreign Investment in Indonesia is very important and strategic in supporting the implementation of national economic development and increasing economic growth in the community. Foreign investment which is regulated in law No. 25 of 2007 about the legal protection for foreign investment in Indonesia, both investment in the form of a Limited Company (PT) or investment. This shows that foreigners in Indonesia who carry out their capital investment activities are regulated by law and protected by the government under the law. The formulation of the problem were how the position of the establishment of foreign investment companies in Indonesia was, what the procedures for the implementation of foreign investment in Indonesia were, and what efforts have been made by the government if there were violations of law in foreign investment in Indonesia. The results of the study showed every foreign company that wanted to invest in Indonesia had to get the principle permission to the Investment Coordinating Board (BKPM) and the One Stop Integrated Investment and Services Office (PTSP), so that the company could be established in Indonesia and its establishment was in accordance with the procedures of the law on foreign investment so that the foreign investment company was fully under the responsibility and supervision of the Republic of Indonesia. The government also gave relief to foreign investment in Indonesia in freeing the entry tax fees for goods or electronic equipment for foreign investment (PMA) in Indonesia in investing their capital.

FAKTOR-FAKTOR YANG MEMPENGARUHI KEPATUHAN PAJAK, DENGAN PENDEKATAN PERILAKU DAN ETIKA (Studi Empiris Pada Perusahaan PMA Yang Terdaftar Di Kanwil DJP Jakarta Khusus)

The purpose of this research is examine the factors that affect tax compliance, with the approach Theory of Planned Behavior (TPB) and ethics. The fact that tax compliance is still low in Indonesia, including foreign investment companies (PMA). Variables used for this research based on some previous research such as Schifter and Ajzen (1985), Ajzen (1991), Recker (1994), Hanno and Violette (1996), Blanthorne (2000), Bobek and Hatfield (2003) Ajzen and Fishbein (2005), Trivedi et. al. (2005), Mustikasari (2007), Hutagaol (2007), Harinurdin (2009), Wangsa (2009), Ernawati and Purnomosidhi (2011), and Damayanti (2012) with slight modification. The samples of this research consisted of one hundred and fifty tax professional as a representative of foreign investment company (PMA) in Kanwil DJP Jakarta Khusus. Structural Equation Modeling (SEM) was used for data analysis. The result showed that ethics of tax professional as PMA representative contributes a significant positive to tax compliance. The empirical results show that in order to improve tax compliance behavior of taxpayers, ethics in environment must continue to growed, Directorate General of Taxation can conduct a psychological approach to the taxpayer in order to further improve compliance in implementing their taxation

Large-scale mining and ecological imperialism in Africa: the politics of mining and conservation of the ecology in Ghana

<p>The article draws on the insights of political ecology to illuminate the politics shaping the enforcement of environmental regulation in the mining sector of Ghana. We argue that the Ghanaian state uses strong-arm measures against artisanal and small-scale mining (ASM) operators, particularly, the subaltern classes engaged in the industry for survival. Periodically, the state deploys the military and the police to clamp down on ASM for destroying the environment, but treats with kid gloves foreign companies engaged in large-scale mining (LSM), wreaking similar disastrous ecological effects on mining communities. The state believes that LSM by foreign companies is a source of foreign direct investment (FDI) and foreign mining companies should be incentivized to come and stay in the country. Presented in broad-brush strokes as illegal (<em>galamsey</em>), the Ghanaian state sees ASM as an environmental menace to be fought with all the coercive apparatuses that it can command. Disputing this claim, the article argues that mining-FDI is essentially ecological imperialism, wreaking havoc on the ecosystem of mining communities whose livelihood strategies are in conflict with the accumulation and political interests of foreign mining companies and the Ghanaian political class respectively. The article demonstrates that concerns over the harmful impacts of mining on the ecology of Ghana are neither class-neutral nor free of politics. They are rather highly imbricated in power structures and relations, in which the interest of the ruling class is supreme in the enforcement of environmental regulations in Ghana. The paradox of the biases of the Ghanaian state against ASM, particularly ASM operated by its own citizens for survival, and in favor of foreign mining companies engaged in LSM for profits, is explained with the insights of ecological imperialism.</p><p><strong>Keywords:</strong> Large-scale mining, artisanal and small-scale mining, Operation Vanguard, Ghanaian state biases, ecological imperialism</p>

Foreign Investment, Corporate Governance and Firm Performance in Vietnam Listed Companies

This paper examined the effect of corporate governance on firm performance in foreign-invested Vietnamese companies. It used data on 36 companies that were listed on the Ho Chi Minh Stock Exchange (HOSE) in the period 2012–2016. This study investigated the influence of three aspects of corporate governance on return on equity (ROE) in these companies; board characteristics, ownership structure, and firm characteristics. The findings of this study discovered that corporate governance had a strong effect on the performance of foreign-invested companies on HOSE in Vietnam. One factor showed a positive effect on firm performance in respect of board characteristics is the ratio of women to men, although the study concluded that the effect of a high ratio of foreigners on the board had a negative impact. In respect of ownership structure, a statistically significant relationship was found between ownership concentration and firm returns. Regarding firm characteristics, it was found that larger firms with foreign investment had slightly better performance. Final conclusions included that companies should be mindful of the impact of board characteristics in particular with respect to firm performance. Companies ought to promote gender equality and maintain an appropriate ratio between foreign and Vietnamese board members in order to achieve optimal firm performance. There was also a positive and statistically significant relationship between ownership concentration and firm performance. The results implied that large shareholders play an essential role in the debate on shareholders ’value creation and performance of foreign-invested HOSE enterprises.

THE PROBLEM OF THE SUPERVISION OF IMMIGRATION STAY LICENSES ON ILLEGAL FOREIGN LABOR WORKING IN FOREIGN CAPITAL INVESTMENT COMPANIES IN INDONESIA


 
 Abuse of Residence Permits by foreigners with the mode of using tourist visit visas often occurs, generally used in the context of working as a Foreign Worker in a Foreign Investment Company in Indonesia. This has led to a reduction in employment opportunities for Indonesian Migrant Workers in the country and a reduction in State income in terms of the use of Foreign Workers. Based on the facts in the field, the problem of misuse of Tourism Visit Stay Permits generally comes from the policy of Free Visa for Tourist Visits, this is a problem that over time is increasingly difficult to resolve, even more difficult to detect by law enforcement officials. The involvement of Indonesia in various international agreements that accommodate the ease of investment and the use of foreign labor, has made Indonesia increasingly fulfilled by investors and foreign workers. The problem of the use of foreign workers needs to be taken seriously by the government, especially in monitoring its activities while in Indonesia, so that the use of foreign labor can be beneficial for Indonesia. Giving ease of Visa Free in order to increase foreign exchange in tourism to foreigners who will enter Indonesia, of course, must be accompanied by supervision of their residence permit as a consequence of the ease of granting the Visa Free. In order for the practice of using foreign workers illegally by foreign investment companies, it can be minimized as early as possible
 
 

Assessment of Factors Affecting the Foreign Investment Attraction in Iran

Abstract Foreign investment is a critical development strategy. The aim of the study was to investigate the factors affecting the attraction of foreign investment in Iran. The statistical population included foreign investment companies covered by the Foreign Investment Promotion and Protection Act and some experts from investment licensing executive agencies in Tehran province. A total of 400 subjects were enrolled in 2014-2017. The data analysis was performed using Kolmogorov-Smirnov test. All foreign investment companies covered by the investment promotion and protection law were studied by sampling. In addition, a non-random sampling method was used at the experts’ level in the operating systems and executive organisations. In the present research, the Cochran formula was used to determine the sample size being 400 subjects. As a result, 550 questionnaires were distributed and completed; finally, 400 questionnaires were received and analysed in a correct and complete manner. Within the framework of the research, the parametric test (t-test) and linear regression were used for data analysis and the hypotheses due to normal distribution. After analysing the data collected from results of the respondents’ responses and based on mathematical and statistical models, the most important factors affecting foreign investment attraction were the economic factor (p<0.001) followed by the social factor (p=0.002), the administrative bureaucracy (p=0.003), cultural factor (p=0.021) and the agent of the state (p=0.031), all of which exhibited a significant relationship. Based on the results, the economic and cultural factors were the most effective parameters affecting foreign investment.

Efektivitas Instalasi Pengolahan Air Limbah pada Effluent Treatment Unit (ETU) PT Lotte Chemical Titan Nusantara

<p>PT Lotte Chemical Titan Nusantara (PT LCTN) is a Korean Foreign Investment Company in Cilegon City which is a polythylene producing industry. PT LCTN produces waste water into the sea. Wastewater treatment refers to the Decree of the Minister of Environment Number 22 of 2011 on the Permit for Disposal of Wastewater into the Sea of PT Titan Petrokimia Nusantara. The<br />purpose of the research is to identify the problem and the improvement step in wastewater treatment. The effectiveness of wastewater treatment erformance at ETU (Effluent Treatment Unit) in 2015, especially on test parameters such as Total Dissolved Solid, TSS (Total Suspended Solid), Nitrate, Nitrite, BOD (Biochemical Oxygen Demand) and COD (Chemical Oxygen Demand). Statistical analysis SPSS Version 22 shows the average value of inlet and outlet there is a difference because the value of trithmetic is smaller than t table. In other words can give a significant influence on the<br />inlet and outlet. Percentage effectiveness of TDS reach 33,33%, TSS reach 91,67%, nitrate reach 25% while for nitrite reach 83,33%.</p>

An Analysis of FDI Effects on the Labor Market in Korea

This paper analyzes the effect of foreign direct investment (FDI) on the labor market in Korea, quantitatively and qualitatively. In particular, we measure the routine task-intensity (RTI) index similar to that of Autor and Dorn (2013) to investigate the FDI effect on Korean labor market qualitatively. It is shown that the RTI index is higher in the manufacturing sector than in the non-manufacturing sector; the FDI effect on employment in the manufacturing sector is insignificant but in the non-manufacturing sector, it is significantly positive. Moreover, the FDI effect on per capita labor costs and the share of full-time jobs is significantly positive in both the manufacturing and non-manufacturing sectors. In addition, the FDI effect on the RTI index is significantly negative in the manufacturing sector but is insignificant in the non-manufacturing sector. Finally, an analysis using a propensity score matching technique shows that the employment in foreign-invested companies is higher than that in domestic companies, leading us to think that relatively insufficiently competitive domestic companies are crowded out in the market.

PENGURANGAN DEFECT PADA PRODUK SEPATU DENGAN MENGINTEGRASIKAN STATISTICAL PROCESS CONTROL (SPC) DAN ROOT CAUSE ANALYSIS (RCA) STUDI KASUS PT. XYZ

PT. XYZ is a foreign capital investment companies are located in one area of town of Sidoarjo which has more than 7000 employees in it and of course want to have a high quality product . PT footwear products. XYZ is the world quality products that promote the quality and comfort of the wearer. Problems that occur in the production process of PT . XYZ of 7 -injection engine that has the most number of engine defect is 5.6 and 7. Quality products at heavily influence the shoe production to consumers. If damaged, then the product can not be distributed to consumers .Therefore , the quality of the shoes must be maintained for the successful marketing of the product. From our previous improvements made in reducing the defect in the production process , but the result is less than optimal , so do research that aims to make improvements again with another method . The method used in this research is to apply the methods of Statistical Processing Control (SPC) and Root Cause Analysis (RCA). The results of the check sheet analysis and Pareto diagram can be seen the frequency of product defects (defects) over roughing most occurred in March 2016 as many as 345 shoes (62%) of the total production of 489 products. Then the second frequency in February 2016 as many as 214 shoes (38%) of the total production of 357 products. And from the image Control Chart P can be concluded that the data are in a state of uncontrolled. Because of all these 50 data, there is one data point that is outside the control limits (out of control), on the 4th point the data has a value of the proportion of 1, beyond the limits Upper Control Limit (UCL) is equal to 0.938. During the dots located within the boundaries of a controller, a process is under controlled conditions, and no action required. However, one point that lies outside the control limit is interpreted as the fact that the quality control in the production process (injection) PT. XYZ uncontrolled or still experiencing irregularities. Whereas the causes of the failure of a critical process in the production process are humans, machines, methods and materials.

Stock price analysis of sustainable foreign investment companies in Indonesia

The stock price is determined by demand and supply in the stock market. Stock price reacts to information. Sustainable investment is an investment that considers environmental sustainability and human rights. This study aims to predict the probability of above average stock price by including the sustainability index as one of its variables. The population is all foreign investment companies in Indonesia. The target population is companies that distribute dividends – also as a sample. The analysis tool is a logistic regression. At 5% alpha, it was found that sustainability index did not have the probability to increase stock price average. The significant effects are free cash flow and cost of debt. However, sustainability index can increase the Negelkarke R square. The implication is that the awareness of sustainability is still necesary to be improved because from the research result it can be seen that investors only consider the risk and return.

Investing with One Hand Tied Behind Your Back An Australian Perspective on United States Tax Rules for Non-Resident Citizens

The United States is unique in taxing non-resident citizens under the same rules as residents. For Australian citizens and residents who are also US taxpayers, the impact of this is much greater than the generally minimal amount of US tax due each year. The US grants citizenship broadly and makes it difficult and expensive to cleanly exit the US tax system. Planning one’s tax affairs under two very different tax systems is complex and often results in sub-optimal financial outcomes. Australian citizens and permanent residents who are required to file US tax returns will find it more difficult to effectively save for retirement than their peers, and will be more likely to rely on the Australian government’s social safety net in their later years. The US tax code significantly discriminates against many non-US investments and business structures, which constrains the options of affected Australian-resident taxpayers, many of whom are also Australian citizens. The treatment of Australian superannuation on a US tax return is the subject of some disagreement among tax professionals. Australian investment opportunities outside of superannuation are also limited for US taxpayers. Australian managed funds are punitively taxed under the Passive Foreign Investment Company (PFIC) rules. For entrepreneurs and small business owners, the US tax treatment of “foreign” corporations owned or controlled by a US person can unravel any Australian tax advantages. Family trust structures often recommended for asset protection and tax planning purposes in Australia would likely be treated as disregarded entities on a US tax return. Finally, US law may make it difficult for non-resident US citizens to open financial accounts in the US making it difficult to avoid the punitive US tax treatment of Australian investments. Although this paper focuses on Australia and the interplay between US and Australian tax rules, the issues raised are broadly applicable to US citizens residing anywhere outside of the US.

외국인투자기업의 수익성 및 생산성에 대한 결정요인에 관한 연구

외국인투자기업의 수익성 및 생산성에 대한 결정요인에 관한 연구

Values of Chinese generation cohorts: Do they matter in the workplace?

Based on evolutionary modernization theory (Inglehart, 1997, in press), this study investigates generational differences in basic human values (Schwartz et al., 2012) in the Chinese workplace. A significant series of economic events was used to differentiate three generational cohorts: pre-reform, reform, and post-reform. Using a nationwide sample of employees (N=2010) from state-owned, private and foreign-invested companies, we explored intergenerational differences and similarities in basic human values. We found an increasing openness to change across cohorts, and a surprising upswing in conservation in the post-reform generation. However, we also found similarities in conservation, self-enhancement, and self-transcendence values between the pre-reform and post-reform generations. We also explored how the effects of values on employee behaviors changed across cohorts. The implications of these findings for theory and practice are discussed.

Perlindungan Hukum Terhadap Bank Pada Fasilitas Kredit Debitur Penanam Modal Asing

Credit Channel to Foreign Investment Company has a high risk if incase non-performing loan happen. Due on those cases, the author borders some several issues: 1) What’s issues that causing non-performing loan in credit channel by the foreign investment company? 2) How the bank’s risk if non-performing loan occurs in credit channel by the foreign investment company? 3) How is law providing a legal protection against bank in case non-performing loan occurs in credit channel by the foreign investment company?. Research methods for this journal is using an empiric theory with sosio-legal research. The results are credit channel to a foreign investment company is not having particular rules of legal protection yet against banking industry if non-performing loan happens. So, the government is expected to make a constitution of legal protection against bank for credit channel to foreign investment company so bank is assuring a strong legal certainty.

How does the globalization of firms affect corruption in developing economies?

PurposeThe purpose of this paper is to examine how firms’ characteristics related to globalization affect their perception on corruption and actual experiences in bribery. It focuses on two indicators of globalization, namely, foreign ownership and export, and confines the scope to developing economies.Design/methodology/approachThis analysis uses firm-level data with observation over 60,000 collected from 94 developing economies. The paper employs the probit model to examine how firm characteristics related to globalization affect corruption perception (CP) and incidence.FindingsThe empirical results reveal that for foreign-invested companies, there is a substantial discrepancy between the perceived corruption and the actual. Although they are involved in bribery as frequently as, or less frequently than local firms, they have greater CPs. Exporting firms are more frequently solicited for bribes, but the effect disappears when time spent for government contact is controlled for. Consequently, foreign investment partly contributes to the corruption control, but the export orientation of firms rather aggravates corruption due to regulative environments in developing economies.Practical implicationsThis study provides policy implications that the corruption control through globalization requires streamlining of administration procedure related to foreign investment or trade and, thus, shortening time to deal with public officials. In addition, governments need to emphasize the importance of foreign investment and prevent unethical practices mediated by local partners.Originality/valueThe greatest novelty of this paper lies in using firm level data instead of country level unlike most of the literature. Moreover, the authors focus on firms only in developing economies. As well, unlike most studies using only perception indicators as the proxy of corruption, this paper considers both CPs and actual incidence, and compares each other.

Analisis Faktor-Faktor yang Mempengaruhi Pertumbuhan Ekonomi di Propinsi Banten

<p>The amount national economic growth is important to measuring the success of local economic growth. This is because local economic growth is one of indicator to indicate the level of welfare resulting from economic development. Increasing local economic growth also followed by an increasing number unemployed, wage minimum province and national investment company not offset by decreased employment opportunities and foreign investment company. The number of local economic growth in Banten Province was high for the time period 1999-2013. With average of local economic rate is 5.392 percent each year. The high of local economic growth is economic phenomena in Banten Province. Purpose for this paper is to analysis correlation of factors that influence local economic growth rate in Banten Province. Based on the calculation of multiple regression analysis showed that variables related to national investment company a positive and significant at 0.658, at 2,426 wage minimum province is positively related and significant impact on the unemployment rate amounted to 2.749, foreign investment company has a negative and significant at -0.457.</p><p>Keywords: Unemployment, Employment Opportunitie, Local Economic Growth, National Invesment Company, Foreign Invesment Company.</p>