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FDIs in life cycle stages: firm-level evidence from Taiwan

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Listed:
  • Szu-Hsien Lin
  • You-Jie Chen
  • Tz-Li Wang
  • Ya-Chiu Angela Liu

Abstract

This study aims to examine how attainment discrepancy and financial slack affect risk-taking behaviour across a Firm's Life Cycle (FLC) stages. The empirical results show that the investment behaviour of the firms is deeply affected by the industry's investment behaviour in all FLC stages. Especially in the mature stage, slack search can appropriately explain Foreign Direct Investment (FDI) behaviour, and long-run resource is an essential factor. In the growth stage, financial soundness is a prerequisite for firms to launch FDIs. In the recession stage, firms seem to be insensitive to performance or slack resources.

Suggested Citation

  • Szu-Hsien Lin & You-Jie Chen & Tz-Li Wang & Ya-Chiu Angela Liu, 2012. "FDIs in life cycle stages: firm-level evidence from Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 19(4), pages 393-397, March.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:4:p:393-397
    DOI: 10.1080/13504851.2011.581197
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    References listed on IDEAS

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