*학술저널*

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*The Sequence of Sequential Investment and Its Competitive Effect*

The Sequence of Sequential Investment and Its Competitive Effect

- 인문사회과학기술융합학회
- 예술인문사회융합멀티미디어논문지
- 7권 7호
- 2017.07
- 727 - 735 (9 pages)

Differently from a single investment strategy, a sequential investment strategy has the sequence of investments and thus time value is inevitably considered in order to analyze the effect of the sequential investment on firm performance. In the paper, the sequential investment strategy of Korean firms in China is analyzed. Due to their geographical closeness, Korean firms’ direct investments to China is an eye-catching strategic behavior. A theoretic model is proposed to tackle the effect of Korean firms’ Chinese sequential investments. The model predicts three strategic points. First, the sequence of Korean firms’ sequential investments is a linear function. Second, an initial investment and follow-investments are reversely associated and, between them, Korean firms’ sequential investments are more sensitively associated with follow-up investments. Third, the more the Korean firms are patient, they are more likely to increase the scale of follow-up investments.

1. Introduction

2. The Sequence of Sequential Investments

3. Empirical Work

4. Conclusion Remarks

References