Analyzing the cultural distance between the home country and the host country is the key to solve the survival dilemma of the overseas subsidiaries of Chinese enterprises. This paper selects 6,046 overseas subsidiarie...Analyzing the cultural distance between the home country and the host country is the key to solve the survival dilemma of the overseas subsidiaries of Chinese enterprises. This paper selects 6,046 overseas subsidiaries of 1,263 listed companies in Shanghai and Shenzhen in China from 2011 to 2018 as a sample, uses COX proportional risk model to test the impact mechanism of cultural distance on the survival of overseas subsidiaries of Chinese multinational enterprises, and analyzes how Chinese multinational enterprises use equity control to obtain the advantages of survival and sustainable development. The empirical results show that there is a significant positive correlation between cultural distance and the exit of multinational companies' overseas subsidiaries;Shareholding ratio can weaken the positive correlation between cultural distance and the withdrawal of overseas subsidiaries. Therefore, Chinese multinational corporations should pay attention to the cultural differences between the home country and the host country and increase their control to maintain and develop their operation and growth in the host country market when setting up subsidiaries overseas to carry out the internationalization strategy.展开更多
Library of Congress,built in the year 1800,has the largest collection in the world,with over 1 million books in Chinese.However,in the 1960s-1970s,there were only about 300,000 books in Chinese.The leap from 300000 to...Library of Congress,built in the year 1800,has the largest collection in the world,with over 1 million books in Chinese.However,in the 1960s-1970s,there were only about 300,000 books in Chinese.The leap from 300000 to 1 million,along with development of China-U.S.relations from the establishment of diplomatic relations to maturing relationship,which also reflects the rising interest of the U.S.circles展开更多
Multinational enterprises(MNEs)make investment decisions according to the distance factors at a sub-national level.This paper made estimates using the gravity model with provincial foreign direct investment(FDI)data f...Multinational enterprises(MNEs)make investment decisions according to the distance factors at a sub-national level.This paper made estimates using the gravity model with provincial foreign direct investment(FDI)data from 2000 to 2012 and employed three concepts of distance.Our emprical results indicate that geographic distance and cultural distance have significant negative effects on FDI flow,whereas economic distance has a significant positive effect.It suggests that FDI prefers to locate in regions that are geographically and culturally close but economically distant from the home country,which further implies that FDI in China is dominated by vertical FDI.Our findings suggest that Chinese provincial governments should place emphasis on attracting FDI from culturally close countries and provide institutional support to encourage and promote horizontal FDI.展开更多
This paper investigates the effect of bilateral relations on exports using data from Google Global Data.It finds that bilateral relations significantly reduced the negative effect of cultural distance on exports,indic...This paper investigates the effect of bilateral relations on exports using data from Google Global Data.It finds that bilateral relations significantly reduced the negative effect of cultural distance on exports,indicating that they can promote exports by reducing trade costs.The paper finds that higher average Goldstein scores of events correlated with more exports and that bilateral relations had a larger effect on trust-intensive products,indicating that positive relations built trust and decreased the emotional distance between trading partners.The results also show that bilateral relations promoted exports at both the intensive and extensive margins but with a greater effect on the latter.Finally,bilateral relations had a greater positive effect on developing countries than on developed ones.The results were qualitatively unchanged when endogeneity issues and robustness concerns were considered.展开更多
文摘Analyzing the cultural distance between the home country and the host country is the key to solve the survival dilemma of the overseas subsidiaries of Chinese enterprises. This paper selects 6,046 overseas subsidiaries of 1,263 listed companies in Shanghai and Shenzhen in China from 2011 to 2018 as a sample, uses COX proportional risk model to test the impact mechanism of cultural distance on the survival of overseas subsidiaries of Chinese multinational enterprises, and analyzes how Chinese multinational enterprises use equity control to obtain the advantages of survival and sustainable development. The empirical results show that there is a significant positive correlation between cultural distance and the exit of multinational companies' overseas subsidiaries;Shareholding ratio can weaken the positive correlation between cultural distance and the withdrawal of overseas subsidiaries. Therefore, Chinese multinational corporations should pay attention to the cultural differences between the home country and the host country and increase their control to maintain and develop their operation and growth in the host country market when setting up subsidiaries overseas to carry out the internationalization strategy.
文摘Library of Congress,built in the year 1800,has the largest collection in the world,with over 1 million books in Chinese.However,in the 1960s-1970s,there were only about 300,000 books in Chinese.The leap from 300000 to 1 million,along with development of China-U.S.relations from the establishment of diplomatic relations to maturing relationship,which also reflects the rising interest of the U.S.circles
文摘Multinational enterprises(MNEs)make investment decisions according to the distance factors at a sub-national level.This paper made estimates using the gravity model with provincial foreign direct investment(FDI)data from 2000 to 2012 and employed three concepts of distance.Our emprical results indicate that geographic distance and cultural distance have significant negative effects on FDI flow,whereas economic distance has a significant positive effect.It suggests that FDI prefers to locate in regions that are geographically and culturally close but economically distant from the home country,which further implies that FDI in China is dominated by vertical FDI.Our findings suggest that Chinese provincial governments should place emphasis on attracting FDI from culturally close countries and provide institutional support to encourage and promote horizontal FDI.
基金supported by the National Natural Science Foundation of China(Nos.72173132 and 72003193).
文摘This paper investigates the effect of bilateral relations on exports using data from Google Global Data.It finds that bilateral relations significantly reduced the negative effect of cultural distance on exports,indicating that they can promote exports by reducing trade costs.The paper finds that higher average Goldstein scores of events correlated with more exports and that bilateral relations had a larger effect on trust-intensive products,indicating that positive relations built trust and decreased the emotional distance between trading partners.The results also show that bilateral relations promoted exports at both the intensive and extensive margins but with a greater effect on the latter.Finally,bilateral relations had a greater positive effect on developing countries than on developed ones.The results were qualitatively unchanged when endogeneity issues and robustness concerns were considered.
