Corporate Internationalization Research Articles

CEO’s Early Life Experience of Marketization and Corporate Internationalization

CEO’s Early Life Experience of Marketization and Corporate Internationalization

The Sustainability Journey of Chinese Ready-Meal Companies Going Global: Configurational Analysis Using the Technology-Organization-Environment Framework.

In the new wave of globalization, China's pre-cooked meal industry has rapidly emerged as a significant player in the food supply chain domain, owing to its convenience and diverse choices. Amidst intensifying market competition, crafting a sustainable supply chain for overseas expansion has become an indispensable core element for driving corporate internationalization. This study focuses on the sustainability generation mechanism of the overseas supply chain of Chinese pre-cooked meal A-share listed companies, employing the technology-organization-environment (TOE) framework and fuzzy-set qualitative comparative analysis (fsQCA) method. Herein, an in-depth analysis of 388 data points from 17 listed companies has been conducted. The study systematically reveals the key factors affecting the sustainability of overseas supply chains and identifies three critical sustainability generation paths: the technology-driven and norm compliance model (path 1), the market sensitivity and product innovation model (path 2), and the robust operation and risk control model (path 3). The present study not only introduces a novel perspective on the application of a TOE framework within the realms of sustainable supply chain management and environmental, social, and governance (ESG) criteria but also offers clear directions for companies to enhance sustainability in their overseas expansion process. This includes strengthening technological research and development, compliance construction, market adaptability, product diversity, infrastructure construction, and risk management. Moreover, the research findings provide valuable insights for policymakers in promoting the internationalization of the pre-cooked meal industry and enhancing industry competitiveness.

Corporate Internationalization and Uncertainty of Cash Holdings: Evidence from an Emerging Market

Abstract Purpose – The purpose of this study is to investigate the empirical relationship between corporate internationalization and uncertainty of cash holding in non-financial listed companies of Pakistan. Secondly, the effect of cash flow, size of firm and capital expenditure on uncertainty of cash is also explored. Design/Methodology/Approach - A panel data of 100 companies over the period starting from 2011 to 2018 is collected from the published annual reports. Data is analyzed using pooled and panel OLS regression. For robustness of results dynamic GMM is used. Findings - The estimated results show a significant negative relationship between corporate internationalization and uncertainty of cash holdings. Moreover, large size firms tend to represents a relatively more stable cash balance as compared to small size firms. Practical Implications - The study concludes that firms engage in international operations are in better position to access external capital market and are able to stabilize their liquidity. Originality/Value – This study uses 3 years standard deviation of cash instead of conventionally used absolute change in cash balance to measure uncertainty of cash. This study is among the first studies to examine such sort of relationships in an emerging economy. Further, for robustness of results dynamic panel GMM is applied.

Internationalization of enterprises and quality of financial reports in China: Moderating roles of audit committee characteristics

In the process of seeking sustainable development, enterprises have chosen international business strategy. The purpose of this study is to examine the relationship between the degree of internationalization of Chinese listed firms and financial reporting quality, as well as whether audit committees can moderate the impact of enterprise internationalization on financial reporting quality. The empirical analysis results of Chinese listed manufacturing firms from 2014 to 2018 show that: the degree of corporate internationalization has a significant U-shaped relationship with earnings management. This new finding solves the problem that scholars have inconsistent views on the internationalization of enterprises and the quality of financial reporting. The study also found that audit committees with experience working in accounting firms can inhibit firm earnings management behavior in the early stage of internationalization; audit committees with experience working overseas can inhibit firm earnings management behavior in the later stage of internationalization; the higher the remuneration of audit committee experts, the more it can inhibit firm earnings management behavior in the early stage of internationalization. In the later stage of internationalization, the higher the remuneration of audit committee experts, it helps the earnings management behavior of firms. This provides new evidence on the functioning of the audit committee’s role; however, the independence of the audit committee and the proportion of financial experts do not have a significant effect on the inhibition of earnings management.

Optimal Strategy for Corporate International Investment and Consumption Problem with Stochastic Hyperbolic Discounting

This study investigates the dynamics of a stochastic hyperbolic discounting model in a continuous-time framework to address the complexities associated with the corporate international investment consumption problem (CIICP). By formulating a dynamic programming equation based on the principles of dynamic programming, we seek to untangle the intricacies of CIICP by incorporating log utility. Our research provides valuable insights into the economic ramifications of the proposed model and presents a comprehensive analysis of numerical sensitivities. This investigation not only contributes to a deeper understanding of the CIICP phenomenon but also contributes to more informed decision-making within the field.

The internationalisation of platform-based businesses – the case of GAFAM

The platform-based business model is indicated as the ‘winning’ one in the days of the digitisation of businesses. Such a platform constitutes a digital infrastructure bringing together various groups of users, whereas the platform owner provides facilities for establishing multi-sided relationships and interactions through the platform both within and between such groups. The platform generates the formation of a network of interactions between users and the operator of the business model seeks methods for and ways of monetising such interactions and data by organising the processing of data and the use of interactions. It has stimulated the spectacular development of the GAFAM corporations, the global IT giants and leaders. The paper aims to examine the process of the internationalisation of corporations relying on platformisation and to determine whether platformisation influence the internationalisation of economic activities. As demonstrated by the research carried out, despite their global operations, the digital corporations in question, GAFAM, have not internationalised as the process is traditionally understood; instead, they have been able to effectively operate on a global scale without expanding their foreign assets or foreign employment. It has created entirely new drivers towards decelerating globalisation as businesses relying on platforms and digitisation continue to grow.

DO HARD CASES MAKE BAD LAW? THE EFFECTIVENESS OF GERMAN’S APPROACH TO STRENGTHEN FINANCIAL MARKET INTEGRITY

Background: As a direct consequence of the Wirecard scandal from 2020, which brought the work and, above all, the cooperation of the executive board, supervisory board, and external auditors into the focus of the legal discussion, the German legislator adapted the Stock Corporation Act and also the German Corporate Governance Code has been adapted. Executive board members of Wirecard have been subjected to a criminal investigation after reporting fake revenues and air bookings worth billions. The German Stock Exchange, the Federal Institute for Financial Services Supervision, the Financial Reporting Enforcement Panel, the auditing firm, and the Wirecard supervisory board were all criticized for failing to detect the problem earlier. Former Wirecard stockholders lost money, and lawsuits were filed seeking compensation from the statutory auditor, Wirecard AG, and former board members. Research purpose: Following the formal amendment of the law and the GCGC, the focus is now on the effectiveness of the law and the GCGC in practice. The purpose of this study is to assess whether the German solution to strengthening financial market integrity is effective. Research hypothesis: It is hypothesized that German corporate governance requires additional improvements and further reforms. Methods: The analysis of academic literature, journal and magazine articles, reports, and other relevant literature has enabled the author to empirically build the hypothesis of this document and to identify and address major issues that require further amendments in law as well as and additional studies. Conclusions: The reform of the German law has a substantial impact on the work of companies, its main bodies and statutory auditors. It is evident that certain provisions require modification, and further reforms are both expected and necessary to address the gaps. Aspects of trust, transparency, control and monitoring need to be in the focus of the legal discussion as well as the internationalization of stock corporations with the overarching goal to ensure financial market integrity and to regain trust in German companies.

Recruiting and integrating international high-skilled migrants – Towards a typology of firms in rural regions in Germany

In rural regions in Germany, significant demographic shifts have raised the question as to whether increased employment of international high-skilled migrants can help to address pressing challenges, i.e., a shortage of labor, a lack of corporate internationalization, and reduced innovation activities. While firms play a key role in this context by actively recruiting migrants and harnessing their skills and competences, little is still known about how they differ in harnessing the potential of high-skilled migrants. With this as a starting point, we develop a typology of firms that distinguishes between four types of firms (introverted, absorptive, enthralled, and outgoing firms). Using the example of Thuringia, a predominantly rural federal state in East Germany, and based on a method mix that includes quantitative and qualitative elements, we explore these types in detail, analyze their spatial distribution and discuss options to unlock the potential associated with the employment of international high-skilled migrants.

How does corporate internationalization affect the link between social responsibility and financial performance? Evidence from China

Using evidence from 667 Chinese enterprises over the period 2013 to 2018, this study examines whether corporate internationalization improves the impact of corporate social responsibility (CSR) on corporate financial performance (CFP). Specifically, we define CSR along the dimensions of shareholder, employee, supply chain, environment and society. The change in the relationship between CSR and CFP in the context of internationalization was studied systematically using regression analysis. The study’s results indicate that corporate internationalization exercises a significant and negative moderating effect on the relationship between shareholder-oriented CSR and CFP across the whole sample. In addition, corporate internationalization significantly moderates the relationship between different dimensions of CSR and CFP when the sample is further divided into labor-intensive, capital-intensive and technology-intensive enterprises; and that such moderating impacts vary across the three subsets of enterprises. The findings can suggest to managers in different industries which dimensions of CSR activities are likely to improve CFP in the context of corporate internationalization.

Tax incentives and corporate internationalization performance: evidence from China’s accelerated depreciation policy

ABSTRACT Using data of China’s listed companies from 2010 to 2018, we investigate the effects of China’s accelerated depreciation (CACD) policy on corporate internationalization performance. The results show that CACD policy increases corporate incomes in foreign markets by 16.15% through the market expansion channel and the innovation incentive channel. The policy effect is more pronounced for firms with better corporate governance, more serious financial constraints, and weaker financial risks.

Managerial foreign experience and corporate risk-taking: Evidence from China

This study investigates the relationship between managerial foreign experience and corporate risk-taking. We find that foreign experienced managers in Chinese firms are positively associated with corporate risk-taking and that this mainly exists in private firms rather than in state owned enterprises (SOEs). In privately owned firms, the degree of corporate internationalization and operating leverage are potential channels through which foreign experienced managers affect corporate risk-taking. Moreover, the positive association is more pronounced for managers' practical, rather than educational foreign experience and for managers who gain their foreign experience from countries or regions with advanced management practices and better corporate governance. Short-term visits overseas has no impact on corporate risk-taking. Additionally, the relationship is more persistent among private firms with better corporate governance and those operating in weak local economy. Finally, we find evidence that the risk-taking behaviour from foreign experienced managers is an important mechanism for companies to enhance their value.

EXPORT STRATEGIES IN ENTERPRISE’S INTERNATIONALIZATION PROCESS

The internationalization process involves a wide variety of strategies, each with pros and cons. Businesses must determine which approach is best for them. The export strategy, which is the first step in this process, and the systems in the corporate internationalization process are the main topics of this study. Businesses have numerous challenges when they choose and put into practice the best approach. Instead of focusing on producing a profit as it formerly did, businesses today emphasize surviving and overcoming obstacles. Businesses are now required to enhance labor, capital, and technological mobility, internationalize, and open up to new markets as a result of the effects of globalization. Businesses must make critical decisions before beginning the internationalization process. In order to eliminate uncertainty, boost sales and profitability, lessen the negative aspects of the domestic market, and, more importantly, survive, businesses view operating in international markets as a necessity rather than an alternative.

Influence of ethnocentrism on the work behaviour of expatriates

With the surge in internationalisation of corporations, the number of expatriates in the workforce of organisations across the globe has dramatically increased. Presence of expatriates in the workforce has given rise to unique set of challenges. One of such is the effective management of expatriates’ work behaviour in the workplace. Whereas earlier studies have indicated that ethnocentrism is a fundamental determinant of expatriates’ work behaviour. Accordingly, this study aims at identifying the extent to which expatriates are ethnocentric in their work behaviour by analysing the variables intercultural communication apprehension (ICA), patriotism, and xenophobia. This is because it has been identified that these three constructs are related to ethnocentrism. A quantitative methodology was utilised for this study where data were collected from expatriates using an online self-administered questionnaire. Multivariate data analysis techniques were used in data analysis. The study’s results revealed that ICA, patriotism, and xenophobia are related with expatriates’ ethnocentric work behaviour. Thereby, the current study has offered a mechanism to measure the extent to which expatriates are ethnocentric in their work behaviour. A major outcome of this study would be providing insights into ethnocentrism and its influence on the work behaviour of expatriates.

IFRS IN THE SYSTEM OF CORPORATE GOVERNANCE IN UZBEKISTAN

This article discusses corporate governance and International Financial Reporting Standards as interrelated systems. The exploration of the principles of regulation of economic relations by these two systems made it possible to identify and prove this relationship, which has a positive effect on the practice of corporate governance and international accounting on the activities of joint-stock companies.

A Corpus-based Study on the Corporate International Publicity Translation and Semantic Construction of Corporate Image

A Corpus-based Study on the Corporate International Publicity Translation and Semantic Construction of Corporate Image

Consuming International Law: Towards an Experimental Research Agenda for Understanding the Effects of Corporate International Humanitarian Law Violations on Consumer Buying Behavior

AbstractThe focus of international humanitarian law scholarship, and that of international law more broadly, has traditionally taken a state-centric focus, for good reason. Moreover, the age-old question of “does international law work” is explored thorough the rubric of state and, more recently, corporate-level compliance. Such endeavors, however, overlook a set of participants in international law: The individual. Diffusion of international law norms through the general populace is a valuable goal in itself, but by leveraging their decision-making as consumers, it may also play an important role in inducing greater compliance by companies and states. This is acknowledged by the proliferation of consumer boycott campaigns, country-of-origin labelling requirements, and increased demands for corporate transparency. However, little is known about whether international law influences consumer choices. Using international humanitarian law as an illustrative example, this article contends that international legal scholarship should be expanded to include the consumer within its ambit, and that one promising pathway to do so is through greater uptake of the methodological approaches and insights offered by behavioral economics.

Moderating Effects of Internationalization between Corporate Social Responsibility and Financial Performance: The Case of Construction Firms

The relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) has been crucial in academia and business circles. Numerous construction firms have continued to internationalize construction business over time despite the influence of the COVID-19. The internationalization of construction business makes the CSR–CFP relationship more complicated than usual. Construction firms’ CSR fulfillment serves to engage in reliable relationships with stakeholders and consequently improve CFP. It can bring both benefits and costs to the firm, which suggests that the CSR–CFP relationship is non-linear. This study examines the impacts of CSR on the financial performance of construction firms. We took Chinese-listed construction companies as an example, and an inverted U-shaped curve relationship between CSR and CFP was eventually revealed. Further, the significant moderating role of the degree of corporate internationalization (DOI) in the CSR–CFP relationship is disclosed. The results show that matching a high DOI-high CSR and a low DOI-low CSR is more conducive to CFP promotion. Thus, this research makes contributions to the academic perception of the impacts of CSR and DOI on CFP and provides insights for CSR fulfillment in the international arena.

Twitter and Turkey: Social Media Surveillance at the Intersection of Corporate Ethics and International Policy

ABSTRACT The Arab Spring was a period of optimism when researchers saw social media platforms as a catalyst for advancing democracy worldwide. But Twitter and its peers are corporations that prioritize monetary and political gains. Through digital-ethnographic and archival research on Turkey, we found that the technology social media companies promised would enhance democracy may hinder it by providing authoritarian regimes with additional surveillance/repressive tools. We contribute to social media and surveillance studies by analyzing these tools through the lens of policy and neoliberalism. We further challenge monolithic understandings of neoliberalism and narratives on the positive impact of social media.

Institutional Investors’ shareholding, CEO Tenure and the Speed of Enterprise Internationalization—Based on Regression Method in Statistics

Based on the sample of Chinese A-share listed companies in Shanghai and Shenzhen from 2012 to 2019, this paper focuses on the effect of institutional shareholding on the speed of enterprise internationalization. The empirical results show that the overall institutional investor ownership has a significant negative impact on the rapid international expansion, and the classified independent institutional investors and non-independent institutional investors have a significant inhibitory effect on the speed of corporate internationalization, and with the extension of the term of CEO, the negative relationship between institutional investor shareholding and the speed of enterprise internationalization has been alleviated. The research of this paper can be used as a reference for optimizing the investor structure of the capital market and improving the strategic decision-making efficiency of enterprise management.

R&D internationalization and firm productivity. Does the host country matter?

ABSTRACT The prior literature has established that the internationalization of corporate R&D is motivated by access to new markets and technological knowledge. However, the empirical literature has overlooked whether the market and technological characteristics of R&D host countries influence the firm-level productivity gains from international R&D. This study empirically examines whether international R&D activities affect the productivity of European multinational firms. Estimating an R&D augmented production function shows that the output elasticity of R&D depends positively on the share of international R&D activities. The analysis further shows that the improvements are associated only with offshore R&D in host countries that have experienced fast economic growth or that are technologically stronger than firms’ home country.