Do foreign investments increase firm value and firm performance? Evidence from Japan

Napaporn Likitwongkajon and Chaiporn Vithessonthi ()

Research in International Business and Finance, 2020, vol. 51, issue C

Abstract: As empirical evidence on the impact of internationalization on firm performance remains unclear, we revisit the question of whether foreign investments enhance firm value and firm performance. Using a panel sample of publicly listed firms in Japan during the 1990–2016 period, we find that foreign investments are negatively associated with firm value. In addition, foreign investments are negatively related to firm performance at short- and long-horizons. Furthermore, foreign investments appear to reduce revenue growth but have no effect on firm efficiency, suggesting that simply increasing foreign investments does not necessarily enhance revenue growth or firm efficiency.

Keywords: Firm value; Firm performance; Foreign investments; Japan; Strategy (search for similar items in EconPapers)
JEL-codes: F21 F23 G31 G32 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S027553191830713X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s027553191830713x

DOI: 10.1016/j.ribaf.2019.101099

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().