This research uses an unbalanced date set for a sample of U.S. multinational manufacturing firms to evaluate the effect of the relationships between firm strategic factors (i.e. firm size, marketing intensity and capital intensity) and foreign direct investment (FDI) on firm’s financial performance. Specifically, this study evaluates the direct effect of FDI activity on firm performance, the indirect effect of FDI activity on firm performance, and the moderating effect of FDI activity on the relationships between strategic factors and firm performance. The results suggest that FDI activity plays an important role on the financial strength of U.S. multinational manufacturing firms, and reveal interesting interactions between FDI and some firm strategic factors and their positive effect on financial performance.
Purpose
The purpose of this paper is to examine the degree of persistence of firm performance for publicly listed firms in Indonesia. The study also explores the impact of marketing expenditure on firm’s performance.
Design/methodology/approach
The data comprise 165 listed firms operating in Indonesia over the period 2007–2016. Dynamic panel regression estimations using Arellano and Bond (1991) and Blundell and Bond (1998) techniques have been deployed to generate the results.
Findings
The findings show the existence of positive persistence and sub-optimal level of competition in the performance of Indonesian firms. The results highlight that marketing intensity has a positive and significant impact on firm performance. The positive persistence hints at creation of substantial entry and exit barriers by the Indonesian firms and also indicate that Indonesian firms are able to create behavioral inertia among their consumers by properly directing their marketing efforts.
Practical implications
There is a need on the part of management to strengthen the short-term profit capabilities to nurture long-term benefits of profit maximization. On the regulators part, the authorities should frame the policies to foster long-run competition.
Originality/value
The current study contributes to the sparse literature on persistence of firm performance in the context of emerging economies like Indonesia. This is the first study on persistence of firm performance for publicly listed firms in Indonesia.
This study examines whether board diversity affects firm performance. We investigate this study using panel data of a sample of S&P 500 firms during a 12 year period. After controlling for industry, firm size, and other board composition variables, we find that all three board diversity variables of interest – gender, ethnicity, and age have a significant influence on firm performance. While ethnicity and age have a positive influence on firm performance, it was found that gender has a negative influence. Implications for future research are discussed.
Economic Performance of U.S. Multinational Manufacturing Firms: The Linkages between Foreign Direct Investment and Firm Strategy