International Expansion of Japanese Firms and Firm Longevity

Abstract

This article analyses the impact of international expansion of Japanese firms on firm longevity, since the relationship between multinationality―the number of foreign subsidiaries and the number of host countries―and firm longevity has not been fully comprehended so far. From the results of this study, it is demonstrated that the Foreign Direct Investment (FDI) behavior and the number of host countries and the locations of foreign subsidiaries may not necessarily have significant impacts on firm longevity. In addition, the study reveals that the number of foreign subsidiaries has a significant positive effect on firm longevity.