The Liability of Foreignness of EU Environmental Protection Companies in China: Manifestations and Mitigating Strategies

Ng, Lee Keng; Curran, Louise

doi:10.1108/978-1-78635-332-020161004

Cited by 2 publications

(2 citation statements)

References 17 publications

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“…Some research papers focus on the foreignness liability issue confronting firms in China. Ng and Curran (2017) study the liability of foreignness confronting the foreign companies operating in China, and they find out that the most persistent problems include the use of the local employees and developing relationships with both national and local governments. Most Chinese international business scholars tend to highlight the positive role of foreignness liability in terms of returnees or returnee entrepreneurs.…”

Section: Liability Of Foreignnessmentioning

confidence: 99%

Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

LIU¹

2021

JAR

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Exploring the effective ways of start-up financing is an important and practical issue to technological innovation and economic development. This paper aims to investigate the impacts of information asymmetry on the high-tech start-up financing preference, and whether an entrepreneur’s internationality features moderate the main effects. A sample of 500 high-tech start-ups and new ventures was collected at Shenzhen, China. Regression models are designated for testing both the main effects predicted in research hypotheses and the predicted moderating role of an entrepreneur’s internationality features. Our test results lead to 3 findings: firstly, in the high-tech industries, the information asymmetry mitigated by disclosing intellectual properties can significantly increase the start-up preference for external financing. This finding can be explained by the reduction of agency costs of debts. Secondly, the lessened information asymmetry can shorten the life cycle of start-up financing under the pecking order hypothesis. Lastly, the liability of foreignness is observed to have a significant positive moderating role on the main effects under the investigation. It can be concluded that the information asymmetry and the liability of foreignness are crucial factors influencing start-up financing decisions.This conclusion implies that reducing the information asymmetry by adequately disclosing technological strength and tacit knowledge can benefit the entrepreneurial financing for the high-tech start-ups and new ventures at the early stages, as well as provide an effective shortcut to the start-up financing cycle. Furthermore, the introduction of overseas technologies, funds, knowledge, experiences, and entrepreneurship into the high-tech start-ups does not create the liability of foreignness, and on the contrary, it is an “asset” that can help improve entrepreneurial financing decisions.

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Section: Liability Of Foreignnessmentioning

confidence: 99%

Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

LIU¹

2021

JAR

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“…Although central banks, housing savings banks, policy banks, conglomerate finance companies, auto finance companies, financial asset management companies, trust companies, consumer finance companies, money economy companies and other financial institutions are not able to provide loan services to enterprises. There are also 41 foreign-incorporated banks, but they may face more challenges when operating in China compared to local firm, and according to Ng & Curran (2016), foreign firms incur overseas operating costs when operating outside their local firm, which include the costs of gathering information to better understand the economy, language, laws and politics of the country, as well as the firms' exposure to costs of discrimination from the local community. However, village banks and rural commercial banks, with 1,649 and 1,600 respectively, have the highest proportions.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Debt Maturity Structure on Startup Profitability

Chengzhuo¹,

Azman²

2023

IJARAFMS

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Companies that are just starting out have a better chance of success by taking advantage of the various financial resources available to them. In terms of economic impact, the study of start-ups is considered a positive viewpoint in terms of the positive changes they generate in terms of cash flow as they enable the expansion of economic operations in the Asian region. Debt financing is one form of financing and research on debt financing for start-ups can help them to grow. When a start-up is allowed to take on debt, it is generally assumed that the company will have a reasonable chance of achieving its operational goals and repaying its debts. This chapter presents the results and discussion of the empirical analysis, selecting the FEM as the best model for this study through the p-value and Hausman tests, using the FEM to derive regression results and finally using stability tests to ensure robustness of the results by swapping both dependent and control variables. The study delves into the structure of debt maturities, the findings are that the debt maturity structure has a negative impact on the profitability of start-ups.

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The Liability of Foreignness of EU Environmental Protection Companies in China: Manifestations and Mitigating Strategies

Cited by 2 publications

References 17 publications

Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

Does Information Asymmetry Influence Hi-tech Entrepreneurial Financing?

The Impact of Debt Maturity Structure on Startup Profitability

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