The Effect And Factors Of The Localization Of Top Management:Evidence From The Foreign Subsidiaries In China

摘要

This paper focuses on the localization of top management in foreign subsidiaries of multinational corporations in China. The sample includes subsidiaries whose parent companies are from 18 Countries or areas. Based on the questionnaires, we find that the enterprise performance of the subsidiaries where top management is local is superior to where top management is non-local. And the key factors affecting the appointment of the local to be the top management are the home country of the foreign partner, the rate of the foreign investment, and the average age of the employees.