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

Xiaoteng Ma, Ziyu Tang, Dan Wang and Hao Gao
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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

Sustainability, 2020, vol. 12, issue 7, 1-21

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.

Keywords: multinational enterprises; business performance; technical efficiency; risk culture (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:7:p:2603-:d:336903

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