International diversification and firm performance: the moderating effects of corporate governance Online publication date: Tue, 14-Oct-2014
by Chi-Feng Wang
European J. of International Management (EJIM), Vol. 8, No. 4, 2014
Abstract: In spite of plentiful research on the international diversification-performance relationship, the link between the arrangement of governance systems and the performance of internationally diversified firms is under-explored. Drawing on complementary theoretical perspectives, this study examines the moderating effect of corporate governance on the relationship between international diversification and firm performance. The results show that firms experience superior performance in international diversification when they pay higher levels of managerial compensation, have a larger proportion of independent board members, and separate the roles of CEO and board chairman. This study contributes by showing that firms might alleviate challenges in managing international transactions, and thus improve the performance outcome of their foreign operations, through implementing better arrangements of corporate governance.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of International Management (EJIM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com