Comparative Analysis of Multinational Enterprises and Domestic Companies: A Propensity Score Matching Methodology Approach
DOI:
https://doi.org/10.5377/reice.v12i24.20097Keywords:
Propensity score matching, multinational enterprises, domestic companies, economic performance, competitivenessAbstract
The study aims to employ the Propensity Score Matching (PSM) methodology to conduct a comprehensive comparative analysis of competitiveness and performance differences between publicly listed independent domestic companies (DCs) and multinational enterprises (MNEs). Utilizing data from 2010 to 2022 and encompassing companies worldwide sourced from the Orbis database, this research endeavours to offer insights into the economic performance of DCs and MNEs and consolidate results on a global scale. By creating comparable treatment and control groups of DCs and MNEs based on observable characteristics, and controlling for potential confounding variables such as company size, industry sector, number of employees, countries' economy classification, and geographical location, this approach facilitates a robust examination of the differential key performance indicators between the two groups. The findings outline the distinct characteristics and performance outcomes of DCs compared to MNEs, revealing that MNEs often outperform their local counterparts in productivity and efficiency, especially in industries marked by global competition and advanced technology. However, significant performance gaps exist across countries, influenced by factors such as global market presence, access to capital, and market conditions, with these dynamics varying over time.
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