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JOAMS 2023 Vol.11(2): 50-58
doi: 10.18178/joams.11.2.50-58

Happiness in Sub-National Regions and Foreign Firm Performance: Evidence from China

Jing Yan
Central University of Finance and Economics, Beijing, China
*Correspondence: yan.jing@cufe.edu.cn

Manuscript received October 13, 2022; revised December 7, 2022; accepted January 14, 2023; published April 13, 2023.

Abstract—This study attempts to examine how emotions (happiness in particular) affect the performance of foreign subsidiaries. Our hypotheses are tested on a large sample of foreign firms located in China during the period of 2006-2013. Our results provide evidence for the strong influence of happiness at the sub-national level. We also find that happiness has a weaker positive effect on the performance of foreign subsidiaries with a longer length of operation or a higher level of domestic ownership. Our study extends the literatures of international business by examining the effects of emotion, an important yet under-researched factor, on foreign firm performance. The findings of our research also have important practical implications for foreign firms operating in countries with heterogeneous sub-national regions by showing the importance of examining emotion in the analysis of the business environment for international operation.

Keywords—emotion, happiness, sub-national region, firm performance, emerging markets, multinational enterprises

Cite: Jing Yan, "Happiness in Sub-National Regions and Foreign Firm Performance: Evidence from China," Journal of Advanced Management Science, Vol. 11, No. 2, pp. 50-58, 2023. 

Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License (CC BY-NC-ND 4.0), which permits use, distribution and reproduction in any medium, provided that the article is properly cited, the use is non-commercial and no modifications or adaptations are made.
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