TY - JOUR
T1 - The impact of the economic crisis on the financial performance of multinational corporations
AU - Zhao, Xin
AU - Jiang, Xianling
AU - Li, Zhaoyang
N1 - Funding Information:
The authors thank Editor Beladi, an anonymous referee, and the colleagues at Pennsylvania State University-Erie for comments and suggestions. The authors acknowledge support from University of International Business and Economics (UIBE). The authors also thank Jinghua Liu for data collection. The usual disclaimer applies.
Publisher Copyright:
© 2014 Elsevier Inc.
PY - 2015/5/1
Y1 - 2015/5/1
N2 - We investigate the impact of the recent economic crisis on the financial performance of multinational corporations. The results show that multinational corporations in our study sample have increased more than 1.9 times (from $529.63. million to $1544.82. million) in their sales in Asia, and have increased 13.7 times (from $16.88. million to $247.74. million) in their sales in China from 1999 to 2012. Moreover, we find that the increase in Asian/Chinese percentage sales results in higher accounting performance after the crisis, in contrast to domestic firms. This result is robust and controls for firm and industry characteristics, and possible endogeneity issues. Finally, new entrant firms to Asia and China experienced an increase in ROA, while their matched firms and domestic firms did not. All these results indicate that firms which have taken aggressive actions (e.g., by strategically relocating their sales to other parts of the world such as Asia/China) experienced less adverse effects from the crisis compared with their domestic counterparts.
AB - We investigate the impact of the recent economic crisis on the financial performance of multinational corporations. The results show that multinational corporations in our study sample have increased more than 1.9 times (from $529.63. million to $1544.82. million) in their sales in Asia, and have increased 13.7 times (from $16.88. million to $247.74. million) in their sales in China from 1999 to 2012. Moreover, we find that the increase in Asian/Chinese percentage sales results in higher accounting performance after the crisis, in contrast to domestic firms. This result is robust and controls for firm and industry characteristics, and possible endogeneity issues. Finally, new entrant firms to Asia and China experienced an increase in ROA, while their matched firms and domestic firms did not. All these results indicate that firms which have taken aggressive actions (e.g., by strategically relocating their sales to other parts of the world such as Asia/China) experienced less adverse effects from the crisis compared with their domestic counterparts.
UR - http://www.scopus.com/inward/record.url?scp=84940001625&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84940001625&partnerID=8YFLogxK
U2 - 10.1016/j.iref.2014.11.013
DO - 10.1016/j.iref.2014.11.013
M3 - Article
AN - SCOPUS:84940001625
SN - 1059-0560
VL - 37
SP - 55
EP - 68
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
ER -