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Asia Pacific Journal of Management

, Volume 15, Issue 2, pp 119–136 | Cite as

Local Ownership Restrictions, Entry Mode Choice, and FDI Performance: Japanese Overseas Subsidiaries in Asia

  • Shige Makino
  • Paul W. Beamish
Article

Abstract

This study examines the moderating effects of a host government's local ownership restrictions on the linkage between the choice of foreign entry mode and its performance, using a sample of 917 Japanese foreign subsidiaries in Asia. The study focuses on two foreign entry modes, joint ventures (JVs) and wholly-owned subsidiaries (WOS), and two performance measures, financial performance and termination rate. The results suggest that the extent of local ownership restrictions is negatively and significantly associated with the financial performance of WOS, whereas it does not directly influence that of JVs. There is no clear association between the extent of local ownership restrictions and the termination rate for the JV and WOS samples.

Keywords

Termination Rate Financial Performance Joint Venturis Clear Association Mode Choice 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Shige Makino
    • 1
  • Paul W. Beamish
    • 2
  1. 1.Department of ManagementThe Chinese University of Hong KongShatin, N.T.Hong Kong
  2. 2.Richard Ivey School of BusinessThe University of Western OntarioLondonCanada

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