Subnational institutional environment, scale competition and MNEs' ownership levels in transition economy: evidence from China

This paper shows that the effect of market scale competition on the ownership levels of foreign-funded enterprises is conditioned on sub-national institutional environment in China. Analysis is based on the idea that multinational enterprises subject to the dual pressures of institutional isomorphis...

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Bibliographic Details
Published inJournal of Chinese economic and business studies Vol. 14; no. 3; pp. 243 - 261
Main Authors Xiao, Wen, Pan, Jiadong, Jiang, Jiangang
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 02.07.2016
Taylor & Francis Ltd
Subjects
Boards of directors
Companies
Competition
Economic models
Enforcement
foreign-funded enterprises
Institutional isomorphism
legitimacy
Multinational corporations
Ownership
ownership levels
Panel data
Property rights
scale competition
Transition economies
China
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ISSN1476-5284
1476-5292
DOI10.1080/14765284.2016.1228300

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Summary:This paper shows that the effect of market scale competition on the ownership levels of foreign-funded enterprises is conditioned on sub-national institutional environment in China. Analysis is based on the idea that multinational enterprises subject to the dual pressures of institutional isomorphism and competition in the host country. The provincial panel data from 2001 to 2012 is used for empirical tests. This study indicates that the weaker the legal property rights protection and legal enforcement of contracts, and the higher the opening up, the more the large foreign-funded enterprises decrease their ownership levels, whereas the negative moderating effect incurred by the reduction to government intervention in business is limited significant.
Bibliography:SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 14
ISSN:1476-5284
1476-5292
DOI:10.1080/14765284.2016.1228300