Foreign shareholder, overseas sale and corporate profit margin.

ABSTRACT: China is actively promoting the development of a robust trading nation. In this context, utilizing data from China's A-share listed companies spanning from 2003 to 2021, this study investigates the impact of foreign shareholders on enterprises in a scenario where overseas sales reduce the profit margin of Chinese firms. The findings reveal that overseas sales do indeed decrease the profit margin of Chinese enterprises; however, foreign shareholders mitigate this negative effect and various robustness tests support this conclusion. Mechanism analysis confirms that foreign shareholders primarily enhance enterprise productivity through improved production technology spillover effects, thereby alleviating the adverse impact of overseas sales on Chinese firms' profit margins. Heterogeneity anal

SUBMITTER: Wen C 

PROVIDER: S-EPMC10843053 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature