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Vol. 4 No. 3 (2024)

Articles

Internationalization and Social Responsibility: Their Impact on Financial Performance in the Manufacturing Sector

Published 2024-03-15

  • Shuang Wu
    • ,
  • Huajie Chen
    • ,
  • Qishan Jiang
    • ,
  • Guangdong Yang
    • ,
  • Sengxiang Cai

Abstract

The extent of internationalization within the manufacturing sector influences the financial performance of companies. This study examines 774 listed manufacturing companies from 2016 to 2018, employing multiple regression analysis to explore the relationship between the degree of international operations and financial performance, as well as the impact of social responsibility on financial performance. The findings reveal a U-shaped relationship between the level of internationalization and the financial performance of these companies. Conversely, the relationship between social responsibility and financial performance is characterized by an inverted U-shape. Finally, the paper offers effective recommendations for enhancing the financial performance of listed manufacturing companies.

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