Internationalization Of Chinese Enterprises And Performance Research

The theme of this paper is to study the relationship between internationalization and performance. Carrying out an empirical study in China, the author believes there is a U-shape curve model between FRTR and ROA. Besides, the author compute the degree of internationalization, on which the performance is lowest.These years, China economy grows rapidly. More and more firms go into international market. Some firms succeed, and some failed. So, is internationalization beneficial for China firms? Researches concluded differently. And there are few relative researches carried out in China. In this cases, our study is of great sense.This paper is made up of five parts. The first part demonstrates the background of this study, both practical and theoretical. The second part reviews the relative literature. The third part discusses the status and characteristics of the internationalization of China firms, and brings in three case studies. The fourth part gives the theoretical explain of the relationship between internationalization and corporate performance. The fifth part discusses the methods and results of this study. The U-shape relationship between DOI and ROA is validated, while the relationship between DOI and ROS is not. What is more, with the model, the author computes the degree of internationalization, on which the firm performance is lowest, that is 37%.