2018
DOI: 10.1108/jabs-04-2016-0056
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Does location matter in determining firms’ performance? A comparative analysis of domestic and multinational companies

Abstract: Purpose The purpose of this paper is to investigate the impact of internationalization of investment on corporate policies through multinational firms (MNFs) and thereby variation in financial performances when compared to domestic firms (DFs) using 10 years’ (2004-2013) secondary data of 153 firms listed on Pakistan Stock Exchange. Design/methodology/approach This study applies regression and ratio analyses for testing of hypotheses and other statistics. Findings The results indicate that the performance … Show more

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Cited by 14 publications
(10 citation statements)
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References 54 publications
(69 reference statements)
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“…Consequently, the firm enjoys greater benefits relative to competitors in the industry. These findings are consistent with those of Shah et al (2016) who concluded that large firms had better financial performance. They also agree with findings by Kasman (2012) study which concluded that large banks in Turkey enjoyed cost advantages over the smaller banks hence performed better.…”
Section: Test Of Hypothesissupporting
confidence: 92%
See 1 more Smart Citation
“…Consequently, the firm enjoys greater benefits relative to competitors in the industry. These findings are consistent with those of Shah et al (2016) who concluded that large firms had better financial performance. They also agree with findings by Kasman (2012) study which concluded that large banks in Turkey enjoyed cost advantages over the smaller banks hence performed better.…”
Section: Test Of Hypothesissupporting
confidence: 92%
“…The study relied on historical data. Shah, Tahir, Anwar and Ahmad (2016) in their study argued that the size of a firm positively affected performance. The study surveyed 153 listed firms for the period 2004-2013.…”
Section: Empirical Reviewmentioning
confidence: 98%
“…Tian (2011) analyzed in detail the impact of VC stage financing on a firm going public, and argued that when the VC is located far away (in terms of physical distance) from the entrepreneurial firm, stage financing appeared to positively affect the firm's likelihood to go for an IPO, operating performance of the firm and its post IPO survival rate. This relationship is observed to be negative when the firm is closer to the investor (Shah, Anwar, & Hasnu, 2018) Secondly, a firm's choice of exit route between IPOs and acquisition depends on whether the entrepreneur makes the exit choice or if it is a joint choice made in consultation with the VC firm. The presence of a VC investor leads to more likelihood of an exit via IPO (Bayar & Chemmanur, 2011).…”
Section: Hypotheses Developmentmentioning
confidence: 98%
“…Shah et al (2018) investigated the variation in the financial performance of domestic firms relative to the multinational firms and revealed that the effective utilization of organization’s inventory resources has turned out to be a key factor to differentiate the performance levels in both types of firms.…”
Section: Six Sigma Critical Success Factors: a Literature Reviewmentioning
confidence: 99%