The Influence of Risk Culture on the Performance of International Joint-Venture Securities

Abstract

With the development of economic globalization, culture is a key factor supporting the sustainability of foreign direct investment (FDI), especially for multinational enterprises. This paper takes the Chinese capital market as a sample and, combined with interviews with managers of international joint-venture securities (IJVS), finds that the culture of participants formed in developed and emerging capital market has a significant impact on the performance of IJVS. Using the degree of price fluctuation to measure the risk culture of each capital market, this paper observes that the risk culture in the Chinese capital market is significantly stronger than that of developed countries. This paper also finds that the stronger the risk culture IJVS shareholders have, the better they can adapt to the environment of the Chinese capital market and the better the performance they can achieve. Furthermore, risk culture distance, calculated by the risk culture differences between foreign shareholders and Chinese capital market, are significantly negatively correlated with IJVS performance and efficiency.

Joint Ventures and Sustainable Development. A Bibliometric Analysis

“…The acronym BRICS refers to what O'Neil first described in Building Better Global Economic BRICS [125] as emerging economies (Brazil, Russia, India, China and later on South Africa). This classifications ranks at the third position in Table 5, although the majority of publications belong to China (11) [46,67,70,71,77,82,93,111,122,124,126], followed by India (5) [41,76,79,100,104], Russia [47] and South Africa [89]. In the case of China, it increases its numbers if we take into account publications that include Asia ([94,98,103]) and home countries ( [46,62,109,110]).…”

“…This is the most used system of JV creation, since it adjusts to the standard definition and the common purpose of this strategic growth collaborative vehicle, as seen in Table 4. In order to clarify this category, we will highlight some examples: i Startups and growth [78]; ii Foreign venture capital in India [79]; iii Supply chain sustainability [80]; iv Creating value [81] vs. risk culture [82]; v Technological development [43,83]; vi New product development [84]; vii SMB investment modes and sustainability entrepreneurship [48,51,85].…”

“…The most prolific area of sustainability studies is management sustainability, which includes 34 publications, where topics related to the management of the organization (corporation) are developed. It is relevant to quote some of the main topics: Economic environment [46,100,111], tech exchange [43,118], eco social [92,113,114], competitive advantage [66,124], best practices [79,81,82,110], supply chain [80] and human resources [115]. They include diverse topics related to the following sectors: Construction-landscape [42], acoustic issues [69], housing [68] and engineering [46,66,110].…”

Towards Managing Firm Performance through Enterprise Risk Management Practices and Staff Competence: An Empirical Study from the Banking Sector

“…Since then, many studies have continued to assess the impact of risk culture on business performance (Ma, Tang, Wang, & Gao, 2020;Bui, Chen, Hsu, & Lin 2020;Bui, Fang, & Lin, 2018). In fact, it is observed www.acdmhr.theiaer.org in the worldwide level that culture is the comprehensive component that designs the organizational culture, relationship building among people within the organization and reflects the accepted norms of the society, which constitutes the stability, future certainty and success of the firms (Cameron & Quinn, 2011).…”

Podсasting Media Technology In The Soft Power Formation: Economic Efficiency

“…Jha et al (2019) emphasize that international alliances are created mainly between firms from countries with more trust and shorter cultural and geographic distance. Ma et al (2020) underline that culture is a key factor in supporting sustainable foreign direct investment, especially in international companies, in both developed and emerging markets. Thus, in the modern world, a sustainable economic efficiency cannot be provided only by material and technological aspects but requires the establishment of productive relationships that take into account the cultural parameters of a particular society, one of which is intercultural communicative tolerance contributing to adaptation in the context of cultural diversity.…”