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The Influence of Risk Culture on the Performance of International Joint-Venture Securities

Author

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  • Xiaoteng Ma

    (School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Ziyu Tang

    (College of Social Sciences, Adam Smith Business School, University of Glasgow, Glasgow G37ld, UK)

  • Dan Wang

    (International Business School, University of International Business and Economics, Beijing 100029, China)

  • Hao Gao

    (PBC School of Finance, Tsinghua University, Beijing 100083, China)

Abstract

With the development of economic globalization, culture is a key factor supporting the sustainability of foreign direct investment (FDI), especially for multinational enterprises. This paper takes the Chinese capital market as a sample and, combined with interviews with managers of international joint-venture securities (IJVS), finds that the culture of participants formed in developed and emerging capital market has a significant impact on the performance of IJVS. Using the degree of price fluctuation to measure the risk culture of each capital market, this paper observes that the risk culture in the Chinese capital market is significantly stronger than that of developed countries. This paper also finds that the stronger the risk culture IJVS shareholders have, the better they can adapt to the environment of the Chinese capital market and the better the performance they can achieve. Furthermore, risk culture distance, calculated by the risk culture differences between foreign shareholders and Chinese capital market, are significantly negatively correlated with IJVS performance and efficiency.

Suggested Citation

  • Xiaoteng Ma & Ziyu Tang & Dan Wang & Hao Gao, 2020. "The Influence of Risk Culture on the Performance of International Joint-Venture Securities," Sustainability, MDPI, vol. 12(7), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2603-:d:336903
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    1. Javier Muñoz de Prat & María Escriva-Beltran & Roberto Gómez-Calvet, 2020. "Joint Ventures and Sustainable Development. A Bibliometric Analysis," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    2. Alfredo Jimenez & Jeoung Yul Lee & Xavier Ordeñana, 2021. "Introduction: FDI and Institutional Quality: New Insights and Future Perspectives from Emerging and Advanced Economies," Sustainability, MDPI, vol. 13(8), pages 1-4, April.
    3. Joanna Moczydłowska & Joanna Sadkowska & Beata Żelazko & Carmen Nadia Ciocoiu & Ewa Stawicka, 2023. "Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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