International Investment and Firm Performance: A Quantitative Study of Multinational Enterprises

Abstract

This study examines the intricate relationship between international investment and firm performance within multinational enterprises (MNEs). Utilizing quantitative methods and a panel dataset of 300 multinational firms, this research examiness the effects of foreign direct investment (FDI), cross-border mergers and acquisitions (M&As), and global market expansion strategies on key financial performance metrics, including Return on Assets (ROA), Return on Equity (ROE), and Tobin's Q. Employing panel regression model, the study identifies both direct and moderating effects of firm-specific and industry-level characteristics on performance outcomes. The findings demonstrate that international investment significantly enhances firm performance, with differential impacts across firm size, industry type, and geographic diversification. The study contributes to international business literature by providing nuanced empirical evidence on the strategic role of international investment and offers actionable insights for managerial decision-making and policy formulation.