Financial Performance and Characteristics: A Comparison of Born Global and Gradual Internationalization Firms in China

  •  Yanmei Zhang    
  •  Minho Kim    
  •  Wenzheng Chen    


This study examines the financial performance and characteristics of born global firms (BGs) in China. While the literature on BGs is growing, few systematic studies have investigated their financial performance, especially for BGs from developing economies like China. This study compares the financial ratios and rates of BGs with those of gradual internationalization firms (GIs) using analysis of variance and data on 1,069 listed companies in China’s manufacturing industry. The results show that BGs are inferior to GIs in profitability, debt paying ability, growth potential, and asset quality but are similar to GIs in terms of asset management capabilities. Born global firms’ ROA, operating profit margin ratio, gross profit margin ratio, current ratio, quick ratio, P/BV, Tobin’s q, and growth ratios are lower than those of GIs; their debt ratio is higher than that of GIs, but their operating activity ratios are not statistically significantly different. The study also finds that ownership and size differences exert significantly impacts on the financial performance of BGs.

This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1925-4725
  • ISSN(Online): 1925-4733
  • Started: 2011
  • Frequency: semiannual

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