The impact of the economic crisis on the financial performance of multinational corporations
Xianling Jiang and
International Review of Economics & Finance, 2015, vol. 37, issue C, 55-68
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 $529.63million to $1544.82million) in their sales in Asia, and have increased 13.7 times (from $16.88million to $247.74million) 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.
Keywords: Economic crisis; Percentage sale; Multinational corporations (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:37:y:2015:i:c:p:55-68
Access Statistics for this article
International Review of Economics & Finance is currently edited by H. Beladi and C. Chen
More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Haili He ().