AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
rate index, this paper unravels an important antecedent of geographic export diversification and integrates
arguments from international economics with those of international business strategies. Practitioners may gain
relevant insights on the intricate performance impacts of exchange rates. (For more information, please contact:
Dirk Michael Boehe, Insper Institute of Education and Research, Brazil: dirkmb@insper.edu.br)
The Home Country Determinants of Outward Foreign Direct Investment from East Asia during Industrialisation
Period
Ling Liu, University of Edinburgh
This article examines the home country macroeconomic determinants of outward foreign direct investment from
Japan, Korea and China during their industrialization period. Error Correction Model is used to test relationships
between OFDI and explanatory variables in the long run and short run. The results show that the three
countries converge on the same macroeconomic variables GDP per capita, human capital and exports, indicating
that firms are engaging in FDI as a response to export performance through economic development. The
regression results show that the three countries exhibit different relationship with foreign exchange reserves,
exchange rates and interest rates. Japan's OFDI is affected by interest rates in the long run, Korea by exchange
rates and China by foreign exchange reserves in both the long and short run. This implies that limited
differences do still exist across the three countries. (For more information, please contact: Ling Liu, University of
Edinburgh, United Kingdom: ling.liu@ed.ac.uk)
Country of Origin and Behavior of Institutional Investors: Evidence from Japan
Ralf Bebenroth, Kobe University
Nir Kshetri, University of North Carolina
This paper investigates whether country of origin and behavior of institutional investors matter for acquisitions
in Japan. We investigate how the post-acquisition performance of target firms differs across domestic versus
foreign and friendly versus unfriendly institutional takeovers. In applying the arms-length principle and
geographic proximity theory, our results partly confirm that Japanese target firms acquired in an unfriendly
attempt performed better right after the deal. Subsequently, performances were significantly higher for target
firms acquired by foreign institutional investors compared to domestic ones. The number of employees after the
deal decreased strongly for Japanese and for friendly attempts but increased for foreign and unfriendly ones.
Implications are discussed. (For more information, please contact: Ralf Bebenroth, Kobe University, Japan:
rbeben@rieb.kobe-u.ac.jp)
Drivers of Korean Exports: Testing the Influence of Governance Structure and Managerial Orientation
Young Soo Yang, Yonsei University
Yong Suhk Pak, Yonsei University
Young-Ryeol Park, Yonsei University
Determinants of internationalization through export have been perpetually examined for the Korean-context due
to her export-driven economy. Despite the fact that prior literature focused on firm- or managerial-level
analysis, a very distinctive ownership structure of Korean firms such as family- and chaebol-ownership has been
barely examined and needs further clarification on its influence on exports. Also, little research attempted to
examine whether outside directors have adequate knowledge and information to make meaningful contributions
to exportation. As a result, this paper extends the study of export behavior of Korean firms by highlighting
managerial experience of outside directors and governance structure of Korean firms. We tested the drivers of
Korean exports using the samples of 453 Korean manufacturing firms which are listed in the Korean Stock
Exchange (KSE) from 2005 to 2008. The results showed that the international experience of top managers and
the distinctive Korean governance structure, Chaebol, positively affected internationalization through export,
while family-owned enterprises was negatively associated with exportation. The contribution of outside directors
AIB 2012 Conference Proceedings
Page 237