Outward foreign direct investment of publicly listed firms from China: A corporate governance perspective

Helen Wei Hu*, Lin Cui

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    76 Citations (Scopus)

    Abstract

    This study examines the influence of key corporate governance factors on the internationalization decisions of emerging economy (EE) firms. By integrating the resource-based view and agency theory, it investigates the effects of controlling owner identity, non-controlling shareholder ownership, and the interactions of these with CEO power, in order to reveal their individual and joint effects on the outward foreign direct investment (OFDI) propensity of EE firms. This empirical study of 224 Chinese publicly listed firms found positive effects of ownership of domestic institutional investors and foreign corporations on the OFDI propensity of the firms, which were moderated by the power of the CEOs in these firms.

    Original languageEnglish
    Pages (from-to)750-760
    Number of pages11
    JournalInternational Business Review
    Volume23
    Issue number4
    DOIs
    Publication statusPublished - Aug 2014

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