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The Value of Internationalization for Emerging Market Firms -- Family versus Non-Family firms

Author

Listed:
  • Chih-Hsiang Hsu

    (Department of Finance, Ming Chuan University, Taiwan)

  • Ming-Sung Kao

    (Department of International Trade and Finance, Fu Jen Catholic University, Taiwan)

  • Lee-Men Lee

    (Department of Business Administration, Fu Jen Catholic University)

Abstract

This paper examines how the market responses to emerging market firms' internationalization. Using the sample of 638 Taiwanese multinational firms, the result shows that the firm value decreases with its overseas assets whereas the negative impact is significantly weaker for the family firms than non-family firms. When analysing only family firms further, controlling families with high deviations of cash flow and control righ will be associated with lower value than normal family firms.

Suggested Citation

  • Chih-Hsiang Hsu & Ming-Sung Kao & Lee-Men Lee, 2016. "The Value of Internationalization for Emerging Market Firms -- Family versus Non-Family firms," Economics Bulletin, AccessEcon, vol. 36(2), pages 1214-1222.
    • Handle: RePEc:ebl:ecbull:eb-15-00787
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    References listed on IDEAS

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    Cited by:

    1. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.

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    More about this item

    Keywords

    family firms; internationalization; firm value; agency problem;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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