臺灣博碩士論文加值系統

In a more globalized world, especially because of liberalization of trade, business practices are experiencing international market expansion and diversification. However, when a company become more internationally diversified, the firm performance of the company also will be affected naturally. Therefore, a simple question arises: “Does greater internationalization lead to a better performance?”. This research is conducted to help in explaining the relationship between internationalization and current firm performance using residual income approach. Residual income is considered as an appropriate measure for strategic performance because it comprises the financial risk, measured by cost of capital, and company’s profitability. Moreover, in order to know the international diversification and long term firm performance relationship, this research uses Tobin’s Q as the representation of incorporating expectations measure. The model has been tested at the sample of Indonesian companies in manufacturing sector from 2011-2015. This research result indicated that the relationship between degree of internationalization and current firm performance follows a non-linear J-shape pattern, while the future performance, measured by Tobin’s Q follows a linear pattern with positive slope.

In a more globalized world, especially because of liberalization of trade, business practices are experiencing international market expansion and diversification. However, when a company become more internationally diversified, the firm performance of the company also will be affected naturally. Therefore, a simple question arises: “Does greater internationalization lead to a better performance?”. This research is conducted to help in explaining the relationship between internationalization and current firm performance using residual income approach. Residual income is considered as an appropriate measure for strategic performance because it comprises the financial risk, measured by cost of capital, and company’s profitability. Moreover, in order to know the international diversification and long term firm performance relationship, this research uses Tobin’s Q as the representation of incorporating expectations measure. The model has been tested at the sample of Indonesian companies in manufacturing sector from 2011-2015. This research result indicated that the relationship between degree of internationalization and current firm performance follows a non-linear J-shape pattern, while the future performance, measured by Tobin’s Q follows a linear pattern with positive slope.

ABSTRACT i
ACKNOWLEDGEMENT ii
TABLE OF CONTENTS iii
LIST OF TABLES v
LIST OF FIGURES vi
CHAPTER I. INTRODUCTION 1
1.1. Research Background 1
1.2. Research Objectives 3
1.3. Contents 3
1.4. Research Flowchart 4
CHAPTER II. LITERATURE REVIEW 6
2.1. Internationalization and Firm Performance 6
2.2. Performance Measurement 7
2.3. ROCE - Internationalization Relationship 9
2.4. WACC - Internationalization Relationship 10
2.5. Tobin’s Q - Internationalization Relationship 11
2.6. Logic Flowchart Table 11
CHAPTER III. RESEARCH METHODOLOGY 13
3.1. Research Design, Framework and Models 13
3.2. Hypothesis Testing Tools 18
3.3. Sources of Data 23

CHAPTER IV. EMPIRICAL STUDY 25
4.1. Descriptive Statistics 25
4.2. Hypothesis Testing 26
CHAPTER V. REGRESSION ANALYSIS 34
5.1. Discussion of The Result of Testing DOI to ROCE Relationship 34
5.2. Discussion of The Result of Testing DOI to WACC Relationship 37
5.3. Discussion of The Result of Economic Profit 40
5.4. Discussion of The Result of The Estimation of DOI to Tobin’s Q Relationship 41
CHAPTER VI. CONCLUSIONS AND RECOMMENDATION 42
6.1. Conclusions 42
6.2. Recommendations 44
APPENDIX 1 45
APPENDIX 2 48
APPENDIX 3 61
REFERENCES 64

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