Internationalization of German Companies into the Chinese market – An event study of the consequences on financial performance from a RBV perspective

After its economic opening in 1978, China has become more and more attractive for foreign direct in-vestments and has developed into a strong internationalization target for other countries. This study ana-lyzes the internationalization-performance relationship of German companies entering the Chinese mar-ket. The analysis is carried out for a sample of 257 announcements of the internationalization of German firms into China between 1978 and 2005. The event study methodology is used to measure the German stock market reaction to this event in order to enable a conclusion on the creation or destruction of share-holder value of German firms internationalizing into China...