Foreign Direct Investment and Performance of Japanese Subsidiaries in Malaysia

N. Mohamad, Y. Hoshino, H. Musa, A. Othman, M.M. Abdullah

Abstract


This paper investigates the relationship between Japanese subsidiary’s performance, entry mode, domestic variables, and international experience. We used a sample of 270 subsidiaries from Toyo Keizai Inc., Japan Overseas Investments, listed by countries, from 2005 to 2009. The purpose of this paper is to establish a relationship that is statistically significant with regard to the performance of Japanese subsidiaries, measured through subsidiary and parent company data. A logistic regression model has been applied in this research. The results reveal that domestic variables and international experience had influenced the subsidiary’s performance. Moreover, a parent companies establishment and performance can create better performance for their subsidiaries, especially in parent profit to net sales and parent net sales per employee to an optimum level to retain their profitability.


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ISSN : 2180-3811       E-ISSN : 2289-814X

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