The Relationship between Extent of Internationalization and Firm Performance (Taiwan 1992–2017)

Table 1

Summary of the definitions of variables and the expected effect (h1).

Variable	Definitions	Expected	Notes
Dependent variable
Tobin’s Q
Independent variable
R&D expense ratio (RD)	R&D expense/operation revenue	?	Morck et al. [36] and Wei et al. [34]
Control variables
Degree of internationalization (FS)	Foreign sales as a percentage of total sales, FSTS (FSTS)	+	Bae et al. [9] and Filatotchev and Piesse [10]
Pledge ratio (PL)	Pledge/shares held	−	Yeh et al. [43] and Wei et al. [34]
Debt-asset ratio (DA)	Book value of debts/book value of assets	?	Myers and Turnbull [41] and Stulz [42]
Scale (SC)	ln (total assets)	+	Wei et al. [34]
Board size (BS)	Seat of directors	−	Yermack [44] and Wei et al. [34]
Concurrent post holding (CP) (dummy variable)		?, −	Fich and Shivdasani [45] and Wei et. al. [34]
Proportion of external directors (PD)	Number of external directors/total number of directors	+	Fama [46] and Wei et. al. [34]
Growth rate of fixed assets (LA)	(Total fixed assets of the year − total fixed assets of last year)/total fixed assets of last year	+	Agrawal and Knoeber [33]