| Popis: |
This chapter investigates the factors that determine U.S. firms’ expansion strategies with respect to the timing and resource commitment in China between 1980 and 2005. We collect a new firm-level, cross-industry sample to document when and how firms invest. We find that earlier entry is undertaken by firms with larger advertising expenditures and ones that are more labor intensive. Additionally, investments by firms with high R&D expenditures occur in the later years. We analyze the role of corruption using three popular indexes: The World Bank’s Worldwide Governance Indicators Project (1996-2005), Transparency International’s corruption perceptions index (1980-2005), and Political Risk Services Group’s quality of government index (1984-2005). We find evidence to support the hypothesis that higher corruption levels delay firms’ entry and discourage high-equity commitment. |
