The influence of cultural friction on foreign divestment of multinational enterprises--the moderating role of formal institutional distance and political connections.

ABSTRACT: Multinational enterprises frequently divest their foreign assets in the current economic environment. Existing research, based on friction theory, has mainly focused on the impacts of political and economic disparities on foreign divestment while neglecting the nuanced influence of cultural factors. To address this gap, this paper draws on the cultural friction perspective to capture the diverse cultural resistance faced by each enterprise and explore the relationship between cultural friction and foreign divestment. Data from Chinese publicly listed enterprises engaged in foreign investment are leveraged, and a dual-level analysis is conducted using Logit panel regression and Cox survival analysis to examine the relationship between cultural friction and foreign divestment from both the v

SUBMITTER: Xu Z 

PROVIDER: S-EPMC10857733 | biostudies-literature | 2024

REPOSITORIES: biostudies-literature