Market Timing and Internationalization Decisions: A Contingency Perspective

23 Pages Posted: 28 Apr 2016

See all articles by Lin Yuan

Lin Yuan

University of Macau - Faculty of Business Administration

Xiaolin Qian

Eastspring Investment

Nitin Pangarkar

National University of Singapore (NUS) - Department of Business Policy

Date Written: June 2016

Abstract

Does acquisition of low‐cost capital through market timing improve the likelihood of a firm's internationalization? Under what circumstances will the above relationship be stronger? These questions are the focus of our study. We integrate the arguments of the resource‐based view and the market timing theory to answer these questions. We constructed a sample of capital‐raising moves and international investments by 905 listed Chinese firms spanning the 1992–2012 period. Based on random‐effects regression analyses, we find that firms deploying market timing are indeed more likely to internationalize. We also find that this effect is stronger for initial entries than subsequent expansions in a country.

Keywords: internationalization, internationalization pattern, market timing

Suggested Citation

Yuan, Lin and Qian, Xiaolin and Pangarkar, Nitin, Market Timing and Internationalization Decisions: A Contingency Perspective (June 2016). Journal of Management Studies, Vol. 53, Issue 4, pp. 497-519, 2016. Available at SSRN: https://ssrn.com/abstract=2771457 or http://dx.doi.org/10.1111/joms.12181

Lin Yuan (Contact Author)

University of Macau - Faculty of Business Administration ( email )

Macau

Xiaolin Qian

Eastspring Investment ( email )

10 Marina Boulevard, #32-01
Marina Bay Financial Centre Tower 2
Singapore, 018983
Singapore
018983 (Fax)

Nitin Pangarkar

National University of Singapore (NUS) - Department of Business Policy ( email )

17 Law Link
Singapore 117591
Singapore

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