The Association between the Operating Efficiency of Taiwanese FDI Enterprises in Mainland China and the Investment Performance of Their Parent Companies
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=48634#.VK37YcnQrzE Author(s) Wang Jui-Chih , Hsiao Hsing-Chin Affiliation(s) Department of Accounting Information, National Taipei University of Business, Taipei City, Taiwan . Department of Accounting Information, National Taipei University of Business, Taipei City, Taiwan . ABSTRACT This paper uses data envelopment analysis and seemingly unrelated regression estimation model to examine the association between the operating efficiency of Taiwanese FDI enterprises in mainland China and the investment performance of their parent companies. We find that the more capital-intensive Taiwanese FDI enterprises in mainland China have higher operating efficiencies. Enterprises investing in East China area have lower operating efficiency. In addition, higher operating efficiencies of FDI enterprises in mainland China are associated with higher investment perf...