Foreign Firm Performance Research Articles

Bridging Knowledge Gaps: Returnees and Reverse Knowledge Spillovers from Chinese Local Firms to Foreign Firms

Adopting a knowledge-based perspective and embeddedness theory, this study examines the impact of reverse knowledge spillovers from local Chinese firms to foreign firms using a sample of high-tech firms in Zhongguancun Science Park in China. It also investigates whether returnees in foreign firms help bridge knowledge gaps between local firms and foreign firms. The results show that the presence of returnee CEOs and returnee employees enhances the impact of reverse technological and marketing spillovers on the innovation and financial performance of foreign firms. The findings call for more studies on the social dimensions of knowledge spillovers across international boundaries and have important theoretical and practical implications.

R&D and firm performance: evidence from the Indian pharmaceutical industry

This paper examines the impact of research and development (R&D) activities on firms’ performance for the Indian pharmaceutical industry by utilizing the data of the postreform period (1994–2006). For this purpose, we construct two empirical frameworks, namely growth accounting and production function. Estimation results based on the growth-accounting framework suggest that R&D intensity has a positive and significant effect (15%) on total factor productivity. The results also confirm that the performance of foreign firms operating in the industry is more sensitive toward R&D than the local firms. Furthermore, the estimation results of the production function approach indicate that the output elasticity to R&D capital varies from 10% to 13%. In view of these findings, we propose further encouragement and incentives for doing in-house innovative activities in the Indian pharmaceutical industry.

Managerial ties with local firms and governments: an analysis of Japanese firms in China

This study explores how managerial ties between foreign firms and local firms and those between foreign firms and local government officials affect the performance of firms operating in transition economies. Using survey data collected from Japanese firms operating in China, this study finds that managerial ties between foreign firms and both local firms and local government officials are positively associated with the performance of Japanese firms in China. The study also examines how attributes specific to foreign firms operating in transition economies moderate the positive effect of managerial ties on the performance of foreign firms. Three significant moderators: host country experience, strategic orientation, and local market knowledge of foreign firms, are highlighted in the analysis.

Doing business in China and performance: a review of evidence

PurposeThe number of papers focusing on foreign companies doing business in China has increased significantly since the open‐door policy came into effect in the late 1970s. Performance has been one of the most researched topics. This paper aims to carry out a review of the empirical papers which have analysed the performance drivers of foreign companies in mainland China.Design/methodology/approachThe paper reviews 62 empirical papers dealing with the performance of foreign firms in mainland China, published in ten leading international academic journals between 1978 and 2006.FindingsAn analysis of the main findings is offered, along with a summary of the theoretical approaches, methodologies, samples and performance measures used.Originality/valueThe paper identifies the factors which contribute to greater performance in mainland China. Although other studies have reviewed the literature in the Chinese context, none had specifically tackled this topic through a comprehensive review.

Foreign direct investment in Japan: multinationals' role in growth and globalization

1. Introduction 2. The extent and history of foreign direct investment in Japan 3. The surge in inward FDI 4. Japan's economic growth and foreign direct investment 5. The performance of foreign firms and the macroeconomic impact of FDI 6. The impact of foreign direct investment in Japan: case studies of the automobile, finance, and health care industries 7. The prospects for foreign direct investment in Japan 8. Conclusion.

When in Rome …?

PurposeThe purpose of the paper is to examine the kind of HRM practices being implemented by overseas firms in their Indian subsidiaries and also to analyze the linkage between HRM practices and organizational performance.Design/methodology/approachThe paper utilizes a mixture of both quantitative and qualitative techniques via personal interviews in 76 subsidiaries.FindingsThe results show that while the introduction of HRM practices from the foreign parent organization is negatively associated with performance, local adaption of HRM practices is positively related with the performance of foreign firms operating in India.Research limitations/implicationsThe main limitations include data being collected by only one respondent from each firm, and the relatively small sample size.Practical implicationsThe key message for practitioners is that HRM systems do improve organizational performance in the Indian subsidiaries of foreign firms, and an emphasis on the localization of HRM practices can further contribute in this regard.Originality/valueThis is perhaps the very first investigation of its kind in the Indian context.

Export Oriented FDI

It is well known that the performance of foreign firms compared to domestic companies is superior with respect to employment, wages, and productivity. In this paper we detail the export behaviour of foreign affiliates in the United Kingdom relative to indigenous firms. Our findings show that foreign firms are more likely to export, and when they do so they are more export intensive and overall contribute disproportionately to total manufacturing exports from the UK. While firm-level advantages explain some of these differences in export behaviour, strategic considerations dominate, where these include the differential in costs, productivity, and market size between the UK and foreign countries. That is, both horizontal and vertical motives can be found for the use of the UK as an export platform by foreign firms.

Export-oriented FDI in the UK

It is well known that the performance of foreign firms compared to domestic companies is superior with respect to employment, wages, and productivity. In this paper we detail the export behaviour of foreign affiliates in the United Kingdom relative to indigenous firms. Our findings show that foreign firms are more likely to export, and when they do so they are more export intensive and overall contribute disproportionately to total manufacturing exports from the UK. While firm-level advantages explain some of these differences in export behaviour, strategic considerations dominate, where these include the differential in costs, productivity, and market size between the UK and foreign countries. That is, both horizontal and vertical motives can be found for the use of the UK as an export platform by foreign firms.

Liability of foreignness and membership in a regional economic group

Abstract This study examines the performance of foreign vs. domestic firms in a regional economic group. In particular, we focus on host country and foreign-owned firms in the European Union. Results provide evidence of a liability of foreignness—foreign-owned firms underperform host country firms. However, there is also evidence that liability of foreignness can vary across countries, and that foreign firms can overcome the liability of foreignness in some host countries, even industrialized ones. The results show the moderating effects of the host country and home country environments on the relative performance of foreign firms. Lastly, the results reveal that foreign-owned banks from highly competitive home countries underperform foreign firms from less competitive home countries.

Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms. By Masaaki Kotabe and Kent W. Wheiler. Westport, Conn.: Greenwood Publishing Group, 1996. xv, 208 pp. $59.95.

Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms. By Masaaki Kotabe and Kent W. Wheiler. Westport, Conn.: Greenwood Publishing Group, 1996. xv, 208 pp. $59.95. - Volume 57 Issue 4

Perceptions of anticompetitive practices in Japan and the market performance of foreign firms

Based on an extensive survey of corporate executives living and working in Japan, this study examines the relative rate of occurrence of anticompetitive behavior and its impact on the performance of U.S. companies operating in Japan. By anticompetitive behavior, we refer to illegal commercial activity outlawed by both U.S. and Japanese statute, such as big rigging, price fixing, and market allocation. Thus, this work goes beyond the extensive body of literature addressing Japan’s infamous, but largely government sanctioned, barriers and alleged barriers to trade and looks specifically at activity that even the Japanese government decrees to be criminal and punishable by law. The study finds that the occurrence of anticompetitive behavior is perceived differently by the nationality of the managers surveyed: American executives believe that illegal competitive behavior does occur more frequently in Japan than in the United States, while Japanese executives (and those of other nationalities to some lesser extent) do not perceive such a difference. Second, despite their contrary opinions regarding occurrence, the executives as a general group, regardless of nationality, indicate that anticompetitive behavior has not had a significant negative impact on their business performance in Japan. This work also confirms that foreign companies with the best performance in Japan are those that offer superior products and exceptional service backed by scale economies or other sources of bargaining strength, and that long-term growth and performance depend upon the development of sufficient local autonomy and flexibility to facilitate timely adaptation to local needs and demands.

Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Preface and Acknowledgment Anticompetitive Behavior or Not: An Unsettling Issue Entry Barriers and Antitrust Enforcement in Japan Research Design and Methodology Analyses and Results Conclusions, Implication and Recommendations Appendix Bibliography

Book Review: Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Book Review: Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Book Review: Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Book Review: Anticompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms

Antompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms.

Antompetitive Practices in Japan: Their Impact on the Performance of Foreign Firms.

Valuation Effects of Foreign Company Listings on U.S. Exchanges

This study examines post-listing equity price performance of foreign firms which cross-listed sponsored American Depository Receipts (ADRs) on the New York and the American Stock Exchanges during the period 1982-1992. We use three valuation metrics – price-to-book, price-to-cash-earnings, and price-to-earnings – which are adjusted for the home country and world industry indices to which the listing firm's stock belongs. We find positive valuation effects associated with cross-listing for both country-benchmarked and industry-benchmarked price ratios. Variables that proxy for home country characteristics such as governance styles, disclosure quality, market liquidity, and so forth are unable to explain the cross-sectional variation in the data. Our results thus suggest that cross-listing in the U.S. enhances valuations for listing firms by simply reducing the overall effect of segmentation among different national securities markets.

The Effect of Higher Criminal Penalties on Antitrust Enforcement

Previous articleNext article No AccessThe Effect of Higher Criminal Penalties on Antitrust EnforcementEdward A. SnyderEdward A. Snyder Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by The Journal of Law and Economics Volume 33, Number 2Oct., 1990 Sponsored by The University of Chicago Booth School of Business and The University of Chicago Law School Article DOIhttps://doi.org/10.1086/467213 Views: 14Total views on this site Citations: 17Citations are reported from Crossref Copyright 1990 The University of ChicagoPDF download Crossref reports the following articles citing this article:Jef De Mot, Murat C. Mungan Whistle-Blowing and the Incentive to Hire, SSRN Electronic Journal (Jan 2018).https://doi.org/10.2139/ssrn.3237035Alex Lundberg Do Judges Vary Their Burden of Proof? Evidence from Federal Bench Trials., SSRN Electronic Journal (Jan 2016).https://doi.org/10.2139/ssrn.2816569Richard T. Boylan The Effect of Punishment Severity on Plea Bargaining, The Journal of Law and Economics 55, no.33 (Jul 2015): 565–591.https://doi.org/10.1086/663588Chris William Sanchirico Detection Avoidance and Enforcement Theory: Survey and Assessment, SSRN Electronic Journal (Jan 2010).https://doi.org/10.2139/ssrn.1705406Chun-chieh Huang, Juin-jen Chang, Ching-chong Lai Employment effect of dismissal pay in the presence of judicial mistakes, International Review of Law and Economics 29, no.11 (Mar 2009): 38–45.https://doi.org/10.1016/j.irle.2008.07.002E. Rasmusen, M. Raghav, M. Ramseyer Convictions versus Conviction Rates: The Prosecutor's Choice, American Law and Economics Review 11, no.11 (Jul 2009): 47–78.https://doi.org/10.1093/aler/ahp007Libor Dusek, Fusako Tsuchimoto Responses to More Severe Punishment in the Courtroom: Evidence from Truth-in-Sentencing Laws, SSRN Electronic Journal (Jan 2009).https://doi.org/10.2139/ssrn.1441703Fusako Tsuchimoto, Libor Dusek Responses to More Severe Punishment in the Courtroom: Evidence from Truth-in-Sentencing Laws, SSRN Electronic Journal (Jan 2009).https://doi.org/10.2139/ssrn.1535722J. Mark Ramseyer, Eric Bennett Rasmusen, Manu Raghav Convictions Versus Conviction Rates: The Prosecutor's Choice, SSRN Electronic Journal (Jan 2008).https://doi.org/10.2139/ssrn.1108813Been-Lon Chen Tax evasion in a model of endogenous growth, Review of Economic Dynamics 6, no.22 (Apr 2003): 381–403.https://doi.org/10.1016/S1094-2025(03)00002-4Kenn Ariga, Yasushi Ohkusa, Kiyohiko G. Nishimura Determinants of Individual-Firm Markup in Japan: Market Concentration, Market Share, and FTC Regulations, Journal of the Japanese and International Economies 13, no.44 (Dec 1999): 424–450.https://doi.org/10.1006/jjie.1999.0430Daniel P. Kessler, Anne Morrison Piehl The Role of Discretion in the Criminal Justice System, SSRN Electronic Journal (Jan 1999).https://doi.org/10.2139/ssrn.168611Masaaki Kotabe, Kent W. Wheiler Perceptions of anticompetitive practices in Japan and the market performance of foreign firms, Journal of International Management 4, no.33 (Nov 1998): 173–200.https://doi.org/10.1016/S1075-4253(98)00012-X By Dietrich Earnhart Enforcement of Environmental Protection Laws under Communism and Democracy Earnhart, The Journal of Law and Economics 40, no.22 (Jul 2015): 377–402.https://doi.org/10.1086/467377Thomas J. Miceli Plea bargaining and deterrence: An institutional approach, European Journal of Law and Economics 3, no.33 (Sep 1996): 249–264.https://doi.org/10.1007/BF00709142MALCOLM B. COATE, ANDREW N. KLEIT, RENE BUSTAMANTE FIGHT, FOLD OR SETTLE?: MODELLING THE REACTION TO FTC MERGER CHALLENGES, Economic Inquiry 33, no.44 (Oct 1995): 537–551.https://doi.org/10.1111/j.1465-7295.1995.tb01880.xJAMES ANDREONI CRIMINAL DETERRENCE IN THE REDUCED FORM: A NEW PERSPECTIVE ON EHRLICH'S SEMINAL STUDY, Economic Inquiry 33, no.33 (Jul 1995): 476–483.https://doi.org/10.1111/j.1465-7295.1995.tb01875.x