A Study On The Relationship Between Performance Aspiration Gap And Internationalization:The Moderating Effect Of Ownership And Corporate Governance

Implementing internationalization is an important strategy for enterprises.Since joining the WTO,a large number of Chinese enterprises have actively implemented the strategy of “extroverted internationalization” and constantly demonstrated their own value on the international stage.This has not only aroused widespread concern of the society,but also caused in-depth research in the academic community.However,there are significant differences between the internationalization of Chinese companies and the models advocated by academia.Two types of business phenomena have puzzled scholars: First,companies with a large number of competitive advantages are actively implementing internationalization.Second,the negative information of Chinese companies operating overseas is constantly happening,but they cannot prevent them from implementing internationalization.Why do Chinese companies appear to be “irrational”? Most scholars use the comparative advantage or the international production eclectic theory to explain.Regrettably,these explanations still lack persuasiveness.This paper believes that this phenomenon is closely related to the behavior of the company in the process of internationalization.Therefore,it is of great significance to explore the relationship between corporate behavior and internationalization.This paper studies the internationalization of Chinese enterprises based on corporate behavior theory and governance theory.Among them,the theory of corporate behavior points out that enterprises judge whether the business status is “satisfactory” through performance feedback and decide whether to solve the problem.Various measures will be taken only if the business operation is “unsatisfactory”(ie,a dilemma or a desired gap).So,how does the “expectation gap” affect the internationalization of the company? On the other hand,according to agency theory and prospect theory,people's attitudes toward risk are inconsistent in the state of “benefit” and “damage”.Under different ownership and corporate governance conditions,the “(not)rational behavior of decision makers may be constrained or indulged,and thus the mentality of “rich and make no attempt to make progress” or “fighting for it” is generated.Corporate internationalization is a high-risk strategy,and stakeholders have an important role in risk-taking attitudes.Therefore,it is necessary to examine their impact on the relationship between expectations and the internationalization of enterprises.However,there is no systematic answer to existing research.Through a step-by-step analysis,this paper classifies the research as two core issues:(1)When the domestic operation of the enterprise is in a dilemma,that is,under the expectation of the gap,is the internationalization of the enterprise promoted or suppressed?(2)How does the nature of ownership and corporate governance affect the relationship between expectations gap and corporate internationalization?In order to solve the above problems,this study builds a research model around the relationship between expectation gap and internationalization,and proposes research hypotheses from the perspective of historical expectation gap and industry expectation gap.Then,using 1370 international companies as samples,the panel data for 2004-2016 was collected.After theoretical discussion and descriptive analysis,empirical regression analysis and other statistical analysis methods,this paper has obtained the following conclusions:(1)The expected gap has promoted the internationalization of enterprises.(2)The nature of ownership has a significant impact on the relationship between historical expectations and internationalization.Among them,when the nature of ownership is non-state-owned enterprises,the relationship between historical expectations and internationalization is strengthened.The nature of ownership has little effect on the relationship between industry expectations and internationalization.(3)Executive compensation has a reverse adjustment effect on the relationship between historical expectations and internationalization.Executive compensation has no adjustment effect on the relationship between industry expectations and internationalization.(4)Executive equity incentives have a reverse adjustment effect on the relationship between historical expectations and internationalization.Executive equity incentives have no regulatory effect on the relationship between industry expectations and internationalization.(5)Institutional shareholding has a reverse adjustment effect on the relationship between historical expectations and internationalization.Institutional shareholding has a reverse adjustment effect on the relationship between industry expectations and internationalization.This paper studies innovation on the basis of predecessors.It not only explores the relationship between expectation gap and internationalization,but also introduces the nature of ownership and corporate governance as the adjustment variables,which comprehensively describes the relationship between expectations gap,ownership nature,corporate governance and internationalization.This paper puts forward the argument that “expectation gap is an important factor to promote the internationalization of Chinese enterprises”,reveals the reasons why Chinese enterprises are different from other countries in internationalization,enriches relevant theoretical models,and applies relevant theories to Chinese contexts.Try to provide a reference for the theoretical research and practice of enterprise internationalization.