Performance and Cash Value of Taiwan Multinational Firms' FDI in ASEAN

This study uses sample of 3,341 multinational Taiwanese firms during 2000 - 2017 to analyze how the Taiwanese FDI in ASEAN affects firm performances and value of cash holdings. With the OLS regression of full sample, it is found that FDI has significantly positive effects on accounting-based performance (ROA and ROE) while it has no significant effects on marketbased performance. Similar results are also concluded by country sample. Results from Quantile regression indicate that FDI has significantly different impacts on performance at high- and low-performance firms when performance is measured by FDI gains; FDI at high-performance firms could create significantly larger gains than that at low-performance firms. FDI in ASEAN, however, has not been evidenced to create firm's cash value.