Role of Domestic Financial Reforms and Internationalization of Non-Financial Transnational Firms: Evidence from the Chinese Market

Abstract

The successful internationalization process of Chinese firms which enhances the sustainability of the Chinese economy receives massive research attention. Studies emphasize that firm’s motives and institutional voids play a pivotal role in getting benefits from the internationalization process, but the factors that initiated this process have been overlooked. The objective of this study is to explore the impact of those institutional factors which initiated the internationalization process. This study reveals that institutional factors of cross listing and increased financial availability induced the internationalization process of Chinese firms. Using the financial data of non-financial firms for the period of 2005–2015, we demonstrate that the domestic financial reforms initiated the internationalization process that helps Chinese economies to achieve sustainable economic development. The study also finds that state-ownership helped firms to gain more from increased financial availability than the stand-alone firms. The study concludes that the open business environment helped firms to survive and sustain the international pressure successfully and maintain their sustainable performance.

Analysis and Comparison of Economic and Financial Risk Sources in SMEs of the Visegrad Group and Serbia

“…According to the company's experiences, it was found that companies that have a significantly higher level of experience perceive any kind of risk at a much lower level (H7). The results confirmed the findings of studies about the significance and importance of addressing the assessment of key risks and their resources in SMEs of the Visegrad Group [96,97].…”

The Effect of Monetary Policy and Private Investment on Green Finance: Evidence from Hungary

“…However, whether green financing is effective in addressing current global environmental issues remains to be seen, as the green investment gap was discovered to be very large, with no certainty as to how it can be fixed. According to previous studies (Baloch et al 2018;Baniya et al 2021;Cárdenas Rodríguez et al 2015;Criscuolo and Menon 2015), the current environmental and financial regulations gaps are the main significant reason for the green finance gap.…”

“…The financing tools such as green bonds and climate bonds were introduced for funding environmentally beneficial initiatives (Tolliver et al 2020). As many academic writers have pointed out (Akomea-Frimpong et al 2021;Chang et al 2021;Pyka and Nocon 2021;Aller et al 2018;Baloch et al 2018;Bovari et al 2020;Lamperti et al 2021), however, the financial gap on green investment is still huge in amount.…”

Country of origin institutional factors and internationalization of multinational companies in emerging markets: a review and future research agenda

“…Thus, guanxi have a friendship component that exerts an effect on managerial decisions rather than professional business networks. Besides, according to Baloch et al (2018), the affiliation of isolated companies to business groups can help companies to increase the availability of financial resources and to survive, which can induce the internationalization process.…”