A leap of faith that echoes well? The value impact of Chinese firms starting up business overseas

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dc.citation.volume57
dc.contributor.authorLu B
dc.contributor.authorHao W
dc.contributor.authorLiao J
dc.contributor.authorWongchoti U
dc.date.accessioned2024-06-11T00:06:21Z
dc.date.available2024-06-11T00:06:21Z
dc.date.issued2023-08
dc.description.abstractWe investigate the impact of greenfield outward foreign direct investment (GODI) by Chinese firms on their subsequent Tobin's Q. Our findings indicate that Chinese listed companies from 2003 to 2019 generally experience a significantly positive boost in perceived firm value (or growth prospects) when engaging in overseas business start-ups (i.e., with no foreign partners) when compared to their inactive peers. The positive GODI effect is more prominent among privately owned enterprises vs. state-owned enterprises (SOEs). Our mechanism tests indicate that lowered effective tax rates and reduced illiquidity due to conducting greenfield ODI serve as the value-enhancing channels. Possibly driven by political objectives, SOEs tend to prioritize developing and Belt-Road countries as the destination for their greenfield overseas endeavors.
dc.description.confidentialfalse
dc.edition.editionAugust 2023
dc.identifier.citationLu B, Hao W, Liao J, Wongchoti U. (2023). A leap of faith that echoes well? The value impact of Chinese firms starting up business overseas. Global Finance Journal. 57.
dc.identifier.doi10.1016/j.gfj.2023.100870
dc.identifier.eissn1873-5665
dc.identifier.elements-typejournal-article
dc.identifier.issn1044-0283
dc.identifier.number100870
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/69768
dc.languageEnglish
dc.publisherElsevier Inc
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S1044028323000650
dc.relation.isPartOfGlobal Finance Journal
dc.rights(c) The author/sen
dc.rights.licenseCC BY-NC-NDen
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectGreenfield ODI
dc.subjectFirm performance
dc.subjectState ownership
dc.subjectChina
dc.titleA leap of faith that echoes well? The value impact of Chinese firms starting up business overseas
dc.typeJournal article
pubs.elements-id479665
pubs.organisational-groupOther
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