TY - JOUR
T1 - FDI decisions and business-group insider control
T2 - Evidence from Taiwanese group-affiliated firms investing in the Chinese market
AU - Lin, Wen Ting
N1 - Funding Information:
The authors thank JWB Senior Editor, David Ahlstrom and anonymous reviewers for their detail and valuable comments and suggestions. This research was supported by National Science Council ( NSC-101-2628-H-194-005-MY3 ).
Publisher Copyright:
© 2016 Elsevier Inc.
PY - 2016/6/1
Y1 - 2016/6/1
N2 - Based on resource-dependence theory, three hypotheses are developed and tested regarding the negative relationship between equity stakes in group-affiliated firms held by business-group headquarters and (1) the slack resources of group-affiliated firms, (2) the products of group-affiliated firms that are similar to those of the business-group headquarters, and (3) the human capital of group-affiliated firms. OLS regressions are used to test the hypotheses on a sample of existing group-affiliates of 218 business-groups entering the China market to establish a new affiliate, including 1015 observations during the 2004-2011 period. This study points to a new avenue for research on international business and business-group literature regarding ownership relations between group-affiliated firms and business-group headquarters.
AB - Based on resource-dependence theory, three hypotheses are developed and tested regarding the negative relationship between equity stakes in group-affiliated firms held by business-group headquarters and (1) the slack resources of group-affiliated firms, (2) the products of group-affiliated firms that are similar to those of the business-group headquarters, and (3) the human capital of group-affiliated firms. OLS regressions are used to test the hypotheses on a sample of existing group-affiliates of 218 business-groups entering the China market to establish a new affiliate, including 1015 observations during the 2004-2011 period. This study points to a new avenue for research on international business and business-group literature regarding ownership relations between group-affiliated firms and business-group headquarters.
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U2 - 10.1016/j.jwb.2016.01.003
DO - 10.1016/j.jwb.2016.01.003
M3 - Article
AN - SCOPUS:84955099688
SN - 1090-9516
VL - 51
SP - 525
EP - 533
JO - Journal of World Business
JF - Journal of World Business
IS - 4
ER -