Politician Turnover in home countries and Firms’ Outward FDI from Emerging Economies

Presenters

Professor En Xie
Professor of Management at the School of Economics and Management, Tongji University, Shanghai City, China.

Fanshu Li
PhD student in Business Administration,Tongji University.

Abstract

This study examines how political turnover in home countries affects OFDI made by emerging economy firms. Leveraging data collected from 1,176 publicly-listed firms in China, we found that politician turnover boosts EEFs with strong potential to realize superior performance in future to increase their international expansion. However, firms’ state ownership, their charitable donations, and executives’ political positions in governments moderate the effect. As politician turnover often brings EEFs substantial uncertainty in their institutional environment, the study sheds further light on how institutional environment in home countries affects EEFs’ OFDI.

Biographies

En Xie, PhD, is a Professor of Management at the School of Economics and Management, Tongji University, Shanghai City, China. His research interests include business strategy in emerging economies, strategic alliance networks, and international business. His research has been published in reputable academic journals like Strategic Management Journal, Journal of Operations Management, Journal of World Business, International Business Review, and other leading management journals in China. He has presented his works at AOM, AIB, CIMaR, and refereed management conferences in China.

Fanshu Li is a PhD student in Business Administration at Tongji University. She is supervised by Professor En Xie. Before coming to Tongji, she received her bachelor’s degree in economics from Dalian University of Technology. Now her research interest concentrates on the internationalization of Emerging Economy Firms and several projects based on quantitative analysis are underway. Her current research tries to uncover how the institutional change influences firms' outward FDI in emerging markets. She is now supervised by Prof. En Xie in Tongji University.