Compared to whom? Performance feedback and foreign divestment of MNEs

초록

"Drawing on the behavioral theory of the firm and attribution theory, this study examines how performance feedback based on foreign sales growth influences foreign divestment activities of MNEs. Analyzing foreign divestment deals of U.S. MNEs from 2017 to 2022, we found that MNEs tend to increase foreign divestments as a response to negative social performance feedback on foreign sales growth. Considering the distinct nature of feedback provided by historical and social aspiration levels, we further examine how historical performance feedback on foreign sales growth conditions the relationship between social performance feedback and foreign divestment decisions. Findings suggest that historical performance feedback has either complementary or substitution moderating effect, depending on whether it is consistent with social performance feedback. © 2024 Elsevier Ltd

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