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Learning, foreign operations and operating performance

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  • Tongurai, Jittima
  • Vithessonthi, Chaiporn

Abstract

We study the effect of a firm's internationalization on operating performance using data on publicly listed non-financial firms in Japan during 1990–2019. The proportion of international firms in the sample has been around 30–40% during the sample period. We show that internationalization is not associated with operating performance. Our evidence shows that international firms do not perform better or worse than matched domestic firms with similar firm characteristics. We also find that the relation between international experience and operating performance is U-shaped. These results have wide-ranging implications for international investment strategies.

Suggested Citation

  • Tongurai, Jittima & Vithessonthi, Chaiporn, 2022. "Learning, foreign operations and operating performance," Global Finance Journal, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:glofin:v:52:y:2022:i:c:s1044028322000230
    DOI: 10.1016/j.gfj.2022.100721
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    1. Likitwongkajon, Napaporn & Vithessonthi, Chaiporn, 2024. "Foreign investments and firm risk: Evidence from Germany," Global Finance Journal, Elsevier, vol. 59(C).

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