 Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercisingHongru Liu and Qiaoying Zhu Cogent Business & Management, 2023, vol. 10, issue 2, 2215563 Abstract: Based on Real Options Theory and taking the perspective of growth options exercising, as well as Tobit model, this paper explores how Japanese enterprises adjust ownership structures in their affiliates as a portfolio in China. Empirical results show that: both demand uncertainty and industry growth opportunity in China enhance Japanese enterprises’ ownership expansion in their affiliates as a real option portfolio; Industry competition and capability to control and coordinate the affiliates strengthen the roles of uncertainty and industry growth opportunity play in enhancing Japanese enterprises’ ownership expansion within these affiliates as a portfolio. This paper enriches studies on growth options exercising and illustrates that the logic for real options establishing should not be simply and directly transplanted to real options exercising indiscriminately. Conclusions derived from this paper are of great significance for MNEs’ growth option exercising by adjusting ownership structures in their affiliates as a portfolio within a host country according to changes in the focal host market. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2215563 Ordering information: This journal article can be ordered from DOI: 10.1080/23311975.2023.2215563 Access Statistics for this article Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar More articles in Cogent Business & Management from Taylor & Francis Journals |
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