Effects of Location Diversification and Corporate Governance on Multinational Enterprises＇ Financial Performance and Risk-taking： Evidence from Taiwanese Enterprises.pdfVIP

China＆WorldEconomy ／63．_84．Vo1．23．No．5．2015 墨 EffectsofLocationDiversificationandCorporate GovernanceonMultinationalEnterprises’FinanciaI PerformanceandRisk．takingEvidencefrOm TaiwaneseEnterprises Cheng—ChangLu，Tsung—HanKuan，Chwen—ChiLiu* Abstract Thisstudyinvestigatesthelocationchoiceperformanceofforeigndirectinvestment(FD1) originatingfromsmall--andmedium-s·izedmultinationalenterprisesestablishedinnewly industrializedeconomies．Inthisstudyweintegratelocationdiversification，breadthand corporategovernancetoexaminetheperformanceofTaiwaneseenterprisesinvestingin Chinesema inland．ExaminingTaiwanesema nufacturingenterprisesfromfoundational, rtaditionalandhigh—technologyaspects,ourfindingsdemonsrtatet 如lolwing：(i)diversifying theolcationchoicenegativelyaffectsthereturnofassets；{证)investmentsinregionswithan abundantpopulationpositivelyaffecttheperformanceofTaiwanesertaditionalmanufacturing enterprises；and(iii)ahigherpercentageofinsiderhoMings Taiwaneseenterprisesresults inbetterFDlperformance．WeconcludethattheperformanceofFDIoriginatingfromTaiwanese enterprisesvariesdepend ingonind usrtialand governancecharacteristics．Wesuggesttha t htelocationchoiceforTaiwanFDIinChinesemainlandshouldbedetermined vhte characteristicsofhteindustry．Chinesemainlandshouldatrtactmultinationalenterprises fromemergingma rketsaccordingtothecharacteristicsofregions． Keywords：corporategovemance，foreigndirectinvestment，geographicdiversification， performance，risk JELcodes：E220，F210，F230 ． Introduction Foreingdirectinvesmtent(FDI)isakeyfactorthathasaffectedeconomicgrowthinboth 水Cheng—ChangLu(correspondingauthor)，AssociateProfessor,SchoolofFinance，HubeiUniversity ofEconomics，Wuhan，Hubei，China．Email：cclu1031@yahoo．corn．tw；Ts