The Performance of MNE Subsidiaries in China: Does It Matter to Be Close to the Political or Business Hub?

Lefa Teng, Dan Huang and Yigang Pan

Journal of International Management, 2017, vol. 23, issue 3, 292-305

Abstract: This study examines the impact of distance on financial performance of multinational enterprise (MNE) subsidiaries in China. We hypothesized and found that MNE subsidiaries performed better when located closer to the country's business hub, but performed less well when located closer to the political hub. We also hypothesized that distance effects are moderated by subsidiary size, subsidiary network, and state capital contribution to subsidiary. Our findings were based upon 45,248 MNE subsidiaries with location and geographic distance measured at the prefectural level in China.

Keywords: Location; Distance; MNE performance; China (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intman:v:23:y:2017:i:3:p:292-305

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DOI: 10.1016/j.intman.2016.12.002

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