THE INFLUENCE OF INTERNATIONALIZATION ON THE FINANCIAL PERFORMANCE OF BRAZILIAN AND EUROPEAN COMPANIES

Purpose: analyze the influence of internationalization on the financial performance of Brazilian and European companies. Method/approach: Techniques such as descriptive statistics, tests of difference between means, and multiple linear regression were employed in processing the data from 2016 to 2020. Main findings: The results signaled statistically significant differences between Brazilian and European companies concerning the relation between internationalization and financial performance. The results revealed that internationalization negatively affects financial performance in Brazilian companies, whereas in European companies, the relationship between the constructs proved positive. Theoretical, practical/social contributions: The research findings contribute to expanding discussions on the themes of internationalization and financial performance regarding their analysis in Brazilian and European companies located in divergent economic and institutional scenarios, providing new evidence of the relationship between the constructs. In addition, managers can see how their internationalization strategies (external sales and foreign assets) can be used as drivers to achieve superior and sustainable financial performance. Originality/relevance: The methodology advanced concerning the analysis between the constructs by seeking to correct the endogeneity problem, using more robust estimates, such as econometric modeling using the Generalized Method of Moments (GMM).