Chinese multinationals: host country factors and foreign direct investment location

The study of Chinese multinationals (MNEs) is becoming one of the most promising research topics in the international business literature. After outlining the distinctive characteristics of the internationalization process of Chinese MNEs, this chapter analyzes the influence of various host country factors on the location of Chinese outward foreign direct investment (FDI). From a sample of 189 outward FDI decisions made by 35 mainland Chinese firms in 63 countries, our results show that host market size and the existence of overseas Chinese in the host country are positively associated with the number of Chinese FDIs. However, greater difficulty in doing business and host country political risk have no effect

The Anglo-American financial influence on CEO compensation in non-Anglo-American firms

This study examines the impact of Anglo-American financial markets on CEO compensation. Starting from a sample of Norwegian and Swedish listed firms, we analyse this effect as manifested in the capital market (Anglo-American cross-listing) and in the market for corporate control (Anglo-American board membership). These effects are analysed together with the geographically broader effect of the product and service market internationalisation of the firm. We conclude that all three effects contribute positively to the level of CEO compensation. We argue that the higher CEO compensation found in firms exposed to Anglo-American financial influence - as compared with firms not subject to such influence - reflects institutional contagion, the demand for and supply of viable CEO candidates, and a pay premium for increased risk of dismissal

Foreign direct investment in China: beyond the representative office

Nowadays, China is one of the most important destinations for international expansion of firms from all over the world. Based on the traditional theory on foreign direct investment and the resource-based view of the firm, this paper analyzes the influence of various tangible and intangible firm-specific factors on the choice amongst three different modes of entry into China: representative office, joint venture and wholly-owned subsidiary. The results obtained suggest that the size of the investing firm, its performance as well as its experience regarding the country have a positive influence on the choice of types of foreign direct investment that involve a high level of resources commitment. In addition, the specific aim of the project affects these relationships

Is there a global small world of owners and directors?

This chapter investigates whether a global small world of business owners and corporate directors exists. It evaluates the descriptive power of the tools of the new science of networks to understand governance networks and examines how corporate control had changed in the 1990s and to whose advantage. The findings indicate that the global transnational graph is still strongly structured by national governance networks and that owners and directors are strongly connected to their national markets but loosely connected to other national governance networks