Indian Journal of Science and Technology

Abstract

This study uses a sample of 237 Chinese corporations to analyze the relationships between internationalization and performance as well as moderating effect that corporate governance systems have between these. The findings indicate that the internationalization of Chinese corporations do not have a positive linear relationship with the performance of them. On the other hand, the outsider ratio of the board composition and the number of audit committee members were found to moderatepositively the internationalization-performance relationship. This study provides an important practical implication for corporations that are in the process of international diversification. An effective governance system is required to achieve the positive goals of international diversification in terms of performance. If corporations cannot effectively monitor and control the decisions of top managers during international diversification, they might have significant difficulty to get positive results from such internationalization.
Keywords: Chinese Corporation, Corporate Governance System, Internationalization, Performance