The impact of organizational stigmatization on the operational risk and performance of overseas subsidiaries: empirical evidence from Chinese multinational enterprises

Figures & data

Figure 1. The daily report number of organizational stigmatization aimed at China.

Source: Authors formation.

Figure 2. The characteristics of relevant indicators of organizational stigmatization.

Source: Authors formation.

Figure 3. The variation trend of main variables.

Source: Authors formation.

Table 1. The impact of organizational stigmatization on operational risk and performance.

	Operational risk			Operational performance
Dependent variable	(1)	(2)	(3)	(4)	(5)	(6)
Index	0.00977***	0.00955***	0.00866***	−0.130***	−0.154***	−0.182***
	(10.67)	(10.36)	(8.84)	(−3.12)	(−3.75)	(−4.25)
Size		−0.000757	−0.000734
		(−0.72)	(−0.66)
Director		0.00297**	0.00307**		0.213***	0.232***
		(2.20)	(2.22)		(3.67)	(4.05)
Debt		0.00448	0.00523*		−0.586***	−0.505***
		(1.63)	(1.83)		(−4.84)	(−4.10)
Rona					0.842	1.061*
					(1.32)	(1.70)
Firmage		−0.00117**	−0.00137***		0.0533***	0.0457**
		(−2.56)	(−2.78)		(2.66)	(2.18)
pcgdp					0.519***	0.558***
					(5.13)	(5.42)
Year F.E.	No	No	Yes	No	No	Yes
Industry F.E.	No	No	Yes	No	No	Yes
c	0.0425***	0.0714***	0.0513	18.94***	12.83***	10.92***
	(10.14)	(3.34)	(1.55)	(99.97)	(11.05)	(6.86)
N	536	536	536	552	552	552
R^2	0.176	0.199	0.233	0.017	0.127	0.216

Note: *, ** and *** represent significance at the 10%, 5% and 1% levels, respectively.

Source: Authors formation.

Table 2. The heterogeneous impact based on the enterprises’ ownership.

	Operational risk		Operational performance
	State-owned	Non-state-owned	State-owned	Non-state-owned
Dependent variable	(1)	(2)	(3)	(4)
Index	0.0100***	0.00795***	−0.306***	−0.133***
	(5.39)	(6.59)	(−2.64)	(−3.00)
Size	−0.00110	0.000133
	(−0.71)	(0.08)
Director	0.00202	0.00366**	0.489***	0.0817
	(0.92)	(2.07)	(4.09)	(1.29)
Debt	0.00185	0.00670*	−0.388	−0.527***
	(0.42)	(1.75)	(−1.46)	(−3.84)
Rona			2.069	0.685
			(1.14)	(1.10)
Firmage	−0.000345	−0.00203***	0.0314	0.0662***
	(−0.40)	(−2.96)	(0.64)	(2.62)
pcgdp			0.753***	0.542***
			(3.46)	(4.68)
Year F.E.	Yes	Yes	Yes	Yes
Industry F.E.	Yes	Yes	Yes	Yes
c	0.0506	0.0300	10.45***	9.434***
	(1.14)	(0.59)	(3.52)	(4.77)
N	153	383	161	391
R^2	0.285	0.237	0.314	0.220

Note: *, ** and *** represent significance at the 10%, 5% and 1% levels, respectively.

Source: Authors formation.

Table 3. The moderating effect of political stability and geographical distance.

Moderating variable	Political stability		Geographical distance
	Operational risk	Operational performance	Operational risk	Operational performance
Dependent variable	(1)	(2)	(3)	(4)
$\mathrm{Index}\times \mathrm{ps}$	−0.00511**	0.000766
	(−2.54)	(0.01)
$\mathrm{Index}\times$ distance			0.00974***	−0.000603
			(5.07)	(−0.01)
Index	0.0100***	−0.170***	−0.0792***	−0.173
	(9.02)	(−3.39)	(−4.55)	(−0.21)
ps	0.0230***	0.195
	(2.86)	(0.51)
Distance			−0.0286***	−0.0310
			(−4.52)	(−0.11)
Size	−0.000955		−0.00100
	(−0.84)		(−0.92)
Director	0.00332**	0.234***	0.00295**	0.232***
	(2.40)	(4.08)	(2.18)	(4.04)
Debt	0.00519*	−0.511***	0.00586**	−0.504***
	(1.80)	(−4.13)	(2.09)	(−4.07)
Rona		1.044*		1.056*
		(1.67)		(1.68)
Firmage	−0.00119**	0.0462**	−0.00120**	0.0457**
	(−2.39)	(2.20)	(−2.48)	(2.18)
pcgdp		0.467***		0.557***
		(2.84)		(4.99)
Year F.E.	Yes	Yes	Yes	Yes
Industry F.E.	Yes	Yes	Yes	Yes
c	0.0486	11.71***	0.295***	11.18***
	(1.48)	(6.01)	(4.76)	(3.46)
N	536	552	536	552
R^2	0.245	0.217	0.270	0.216

Note: *, ** and *** represent significance at the 10%, 5% and 1% levels, respectively.

Source: Authors formation.

Table 4. The mechanism of organizational stigmatization on operational performance.

	(1)	(2)	(3)	(4)
$\mathrm{Index}\times \mathrm{risk}$	0.926*	0.598**	0.578**	0.884***
	(1.84)	(2.15)	(1.97)	(3.17)
Index	−0.215***	−0.0623	−0.0628	−0.109***
	(−2.82)	(−1.48)	(−1.46)	(−2.65)
Risk	−6.430**	−4.148***	−4.125***	−4.564***
	(−2.34)	(−2.72)	(−2.68)	(−3.14)
Size		0.877***	0.877***	0.899***
		(32.44)	(32.27)	(33.01)
Director		0.0302	0.0301	0.0233
		(0.87)	(0.87)	(0.69)
Debt		−0.120*	−0.120*	−0.0744
		(−1.70)	(−1.70)	(−1.07)
Firmage		−0.0202*	−0.0205*	0.000421
		(−1.69)	(−1.70)	(0.03)
pcgdp		0.208***	0.215***	0.200***
		(3.32)	(3.26)	(3.16)
Year F.E.	No	No	Yes	Yes
Industry F.E.	No	No	No	Yes
c	19.43***	0.625	0.539	−0.458
	(68.40)	(0.77)	(0.63)	(−0.45)
N	536	536	536	536
R^2	0.028	0.712	0.712	0.753

Note: *, ** and *** represent significance at the 10%, 5% and 1% levels, respectively.

Source: Authors formation.