Abstract
This study aims to analyze whether firms that have a high internationalization rate and make significant investments will achieve good firm performance as measured by the return on assets. Internationalization is measured by foreign sales to total sales, and capital investment is measured by capital expenditure to total assets. I collected a sample of 50 manufacturing firms with the largest market capitalization of each country in the ASEAN-5 within the period 2012-2016. The panel data regression method was used. The results revealed that internationalization has a negative relationship to firm performance that could be caused by the ASEAN-5 still being in the early stages of internationalization. However, capital investment has a positive relationship with firm performance, which is supported by the capital budgeting theory.
Original language | English |
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Title of host publication | Business and Management Issues in the Global and Digital Era |
Subtitle of host publication | Indonesian Perspectives |
Publisher | Nova Science Publishers, Inc. |
Pages | 17-32 |
Number of pages | 16 |
ISBN (Electronic) | 9781536165302 |
ISBN (Print) | 9781536162752 |
Publication status | Published - 11 Nov 2019 |
Keywords
- ASEAN-5
- Capital investment
- Export
- Firm performance