Foreign residency rights and firm internationalization
Year: 2024
Type: article
Abstract: Using a unique data set of privately owned firms in Chinese A-share stock market, we examine the relation between controlling persons’ foreign residency rights and firm internationalization. We find that controlling persons’ foreign residency rights have a positive effect on firm internationalization. This finding is robust after considering endogeneity issues, alternative measures of foreign residency rights, and the impact of financial crisis. Moreover, we find that the positive effect of foreign residency rights on firm internationalization is more pronounced when residency countries/regions have lower cultural/institutional distance from China or better international relations with China. Finally, further analysis shows that firms whose controlling persons have foreign residency rights make better cross-border acquisitions. Overall, our findings shed light on the positive role of controlling persons’ foreign residency rights in promoting firm internationalization. As such, our study enriches the research on controlling persons’ foreign residency rights and the international business literature.
Authors: Yinying Chen, Hui Jiang
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,790
OpenAlex ID: W4405586847