The Impacts of Internationalization on the Performance of Firms－a Quantile Regression Analysis

• Main Authors: Hsin-Ya Chan, 詹欣雅
• Other Authors: 李丹
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/35952363824377111140

碩士 === 元智大學 === 國際企業學系 === 95 === This study examines the effect of internationalization on the performance of Taiwanese firms by using a sample of non-financial firms listed on the TSEC and OTC markets during the six-year period from 2000 to 2006. We employ quantile regression approach to examine the marginal effect of internationalization on performance at various quantiles of conditional performance distribution and test whether the parametric coefficients of internationalization are homogeneous or heterogeneous in the conditional performance distribution. Our empirical results indicate that Breadth (measured by the number of foreign countries where a firm has subsidiaries) has positive effects on Tobin’s Q and ROA, and the coefficients of Breadth are distinct in the magnitude across Tobin’s Q distribution. This result suggests that the effect of Breadth on Tobin’s Q varies dramatically across the market value distribution. The important implication is that for firms with high values of Tobin’s Q, their market values are particularly sensitive to internationalization activities; however, for firms with low values of Tobin’s Q, the stock market will barely recognize their attempts to internationalize.