The Relationship between Extent of Internationalization and Firm Performance (Taiwan 1992–2017)

Abstract

The purpose of this study was to discuss the impact of the extent of internationalization on firm performance measured for firms with a high Tobin’s Q (firms with good operating performance), a median Tobin’s Q (firms with average operating performance), and a low Tobin’s Q (firms with poor operating performance). In addition to discussion on the impact of internationalization on firm performance, this study also discussed the impact of corporate proprietary assets (using assets, R&D, marketing, and management-related variables as moderating variables) and control variables (scale of company, debt-asset ratio, firm age, board structure, and proportion of pledged shares by directors) on firm performance. The research results showed that there is an S-shaped relationship between extent of internationalization and firm performance. However, further discussion found that there is an S-shaped relationship between extent of internationalization and performance for firms with a high Tobin’s Q but a slight decline in the middle of the S-shaped curve, as well as a general linear negative correlation between extent of internationalization and performance for firms with a median Tobin’s Q and an inverted U-shaped correlation between extent of internationalization and performance for firms with a low Tobin’s Q.

Chair–CEO demographic dissimilarities and firm internationalization

“…In contrary, the coefficient of Tobin's Q is significantly negative. This corroborates prior evidence by Wei and Lin (2021) who observe that firm performance is lower, most notably at low and high levels of internationalization. At initial stages of internationalization, declining returns due to rising learning costs and lack of economies of scale may not deter the firms' internationalization efforts.…”

Impact of Carbon Information on Enterprise Value: Analysis Model Design Based on Big Data

“…As a market indicator, Tobin's Q reflects the relative value of an enterprise [20,21]. Tobin's Q is not easy to manipulate and avoids fluctuating stock prices.…”

“…e model used in this article is as follows: in the research, some frequently used variables are selected as control variables in the empirical analysis, such as enterprise size and ownership concentration, using CDI as an independent variable in the model results from scoring the carbon information disclosure index. Tobin's Q was used as the dependent variable in the study [20,21]. Model 1 is constructed to study the impact of carbon information disclosure on corporate value.…”

Influência Da Internacionalização No Desempenho Financeiro Das Empresas Brasileiras E Europeias

“…A relação em forma de S horizontal demonstra que à medida que uma empresa se expande internacionalmente, ela está envolvida em um processo de oscilação que envolve pequenas quedas de desempenho e posteriormente em altas (Rugman & Oh, 2010). Nesse tipo de relação, a forma real da curva é mais precisamente representada como ondas múltiplas (Ruigrok, Amann & Wagner, 2007;Wei & Lin, 2021).…”