OWNERSHIP CONCENTRATION, LOCATION, AND INTERNALIZATION ADVANTAGE IN FINANCIAL PERFORMANCE

Taiwan maintains close economic cooperation with the Southeast Asian countries through trade, investment, and industrial advancement. This paper focuses on multinational enterprises in the Taiwanese electronic industry that invested in Southeast Asia from 1997 to 2009. Regression results show that ownership concentration, location, and internalized advantage have various effects on firm financial performance. Performance indicators reveal that ownership concentration has a positive effect on return on equity and return on invested capital, and location has a positive effect on Tobin's q, whereas internalization advantage is significant for each of them but with less explanation power. Ownership concentration exhibits the greatest explanation power of financial performance. To explore the host country effect, this paper also decomposes the country samples and indicates the theoretical and managerial implications of the research findings.