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Foreign Ownership and Firm Internationalization: Evidence from Taiwan
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Abstract
Internationalization has received escalating attention in corporate strategic choice. The contribution of foreign ownership to Taiwan's economic development was recognized. The higher ratio of foreign ownership indicates that foreign institutions have significant influences on corporate strategy formation, and domestic companies can benefit from assistances of their foreign investors. Hence, foreign ownership will affect corporate internationalization. This paper uses Taiwan's listed companies as sample and measure corporate internationalization by foreign assets, foreign subsidiary and country scope. Our empirical findings suggest that higher the proportion of foreign ownership and foreign director has positive association with e higher degree of corporate internationalization. Foreign investors have international experiences and linkages which foster domestic companies to engage in internationalizing activities
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