Institutional distance and the performance of foreign subsidiaries in Brazilian host market: a positive relationship
Institutional distance and the performance of foreign subsidiaries in Brazilian host market: a positive relationship
This panel study examines the influence of institutional distance on the performance of 399 foreign subsidiaries in the Brazilian host market from 2008-2011. Regression analysis was carried out on panel data using weighted least squares as estimator. Similar to research conducted in other national contexts, results revealed significant correlation between institutional distance and firm performance. Unlike previous research, however, these correlations were positive: the greater the institutional distance, the better the performance. Normative distance, regulative distance and the interaction of the two positively influenced ROA, raising questions with regard to the concept of institutional distance, its operationalization and influence.
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
20 November 2015
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2015)
Institutional distance and the performance of foreign subsidiaries in Brazilian host market: a positive relationship.
In European International Business Academy Annual Meeting, Rio de Janeiro, Brazil.
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Abstract
This panel study examines the influence of institutional distance on the performance of 399 foreign subsidiaries in the Brazilian host market from 2008-2011. Regression analysis was carried out on panel data using weighted least squares as estimator. Similar to research conducted in other national contexts, results revealed significant correlation between institutional distance and firm performance. Unlike previous research, however, these correlations were positive: the greater the institutional distance, the better the performance. Normative distance, regulative distance and the interaction of the two positively influenced ROA, raising questions with regard to the concept of institutional distance, its operationalization and influence.
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Published date: 20 November 2015
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European International Business Academy Annual Meeting, , Rio, Brazil, 2015-12-01 - 2015-12-03
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Local EPrints ID: 423313
URI: http://eprints.soton.ac.uk/id/eprint/423313
PURE UUID: bd0be3d8-7431-4fab-b32e-6f7d558a13f4
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Date deposited: 20 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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