The impact of the economic crisis on the financial performance of multinational corporations ☆
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت) International Review of Economics & Finance, Volume 37, May 2015, Pages 55–68
بحران اقتصادی؛ فروش درصدی؛ شرکتهای چندملیتی
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 $529.63 million to $1544.82 million) in their sales in Asia, and have increased 13.7 times (from $16.88 million to $247.74 million) 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.