Performance of Foreign Invested Enterprises in Service Industry: a Case Analysis from China
Performance of Foreign Invested Enterprises in Service Industry: A Case Analysis from China
Tao Wang, Ying Zhang
School of economics and management
Xidian University Xi’an, P.R. China wangtao5999@163.com , zy06064@163.com
Abstract—This empirical analysis of the performance of FDI in services at a firm’s level was based on a sample of 381 from an investigation of 442 foreign invested service enterprises. The results indicate that foreign-invested enterprises’ performance has negative and significant relationship with the Asset-liability ratio (DAR), and has positive and significant relationship with the proportion of foreign equity (FER) and the firm size (LnScale3), the year of operating (YEAR).
Keywords- Services; Foreign Investment in Services; the proportion of foreign equity; corporate performance
Introduction
An important feature of FDI highlighted in recent World Investment Reports has been the shift towards services. Raff and vonder Ruhr (2001), Markusen and Strand (2009) explain that foreign investors can introduce advanced technologies and accelerate the development of service industry. However, previous literature on services FDI tends to be sector-specific. The main reason for this is perhaps a lack of aggregate data on FDI in services in the past. The purpose of this study is to contribute some useful information to this area in FDI literature.
the analysis of basic operation of foreign enterprises in the services sector of Shaanxi Province, CHINA
In recent years, the service industries in Shaanxi province, China has seen rapid development and the services’ internal structure has greatly improved. We did a comprehensive research on 442 samples of foreign enterprises in the service industry in the 2010 annual cooperative audit of Shaanxi Province, and selected 381 enterprises which are operating and preparing to open business to analyze their basic operation. We find, only six companies are of advanced
Tao Wang, Ying Zhang
School of economics and management
Xidian University Xi’an, P.R. China wangtao5999@163.com , zy06064@163.com
Abstract—This empirical analysis of the performance of FDI in services at a firm’s level was based on a sample of 381 from an investigation of 442 foreign invested service enterprises. The results indicate that foreign-invested enterprises’ performance has negative and significant relationship with the Asset-liability ratio (DAR), and has positive and significant relationship with the proportion of foreign equity (FER) and the firm size (LnScale3), the year of operating (YEAR).
Keywords- Services; Foreign Investment in Services; the proportion of foreign equity; corporate performance
Introduction
An important feature of FDI highlighted in recent World Investment Reports has been the shift towards services. Raff and vonder Ruhr (2001), Markusen and Strand (2009) explain that foreign investors can introduce advanced technologies and accelerate the development of service industry. However, previous literature on services FDI tends to be sector-specific. The main reason for this is perhaps a lack of aggregate data on FDI in services in the past. The purpose of this study is to contribute some useful information to this area in FDI literature.
the analysis of basic operation of foreign enterprises in the services sector of Shaanxi Province, CHINA
In recent years, the service industries in Shaanxi province, China has seen rapid development and the services’ internal structure has greatly improved. We did a comprehensive research on 442 samples of foreign enterprises in the service industry in the 2010 annual cooperative audit of Shaanxi Province, and selected 381 enterprises which are operating and preparing to open business to analyze their basic operation. We find, only six companies are of advanced
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