A Study Of The Determinants Of Enterrse Performance Of Overseas Subsidiaries

China is South Korea’s third largest foreign investor in China, only in 2014 China has invested US $490000000 in his financial. With the development of economic globalization, multinational enterprises to promote the development of world economy continues to expand, the overseas subsidiaries as an independent performance center, as the research object, to explore the influence factors of its performance is of great practical significance.In order to make the performance of enterprises reached a higher value, should always keep the enterprise’s competitive advantage. A part of them also mentioned the competitive advantage as the strategic core business, is the enterprise specific intangible assets. The characteristic of enterprise intangible assets is other enterprise is very difficult to copy, so as to whether enterprises play a crucial role in a strong position in the market (Barney.1991). At this point, set up in foreign subsidiaries can take advantage of the intangible assets to pay the cost of employment of local people and keep the advantage of competition. (Hymer.1976; Zaheer.1995)On the one hand, if the enterprise wants to succeed in the overseas market to stay in business, they must have a certain understanding of the local market. Lack of understanding of the local market, the future is likely to become the obstacle of enterprise’s international expansion (Johanson and Vahlne 1977). If you want to understand and analyze local market must have the appropriate knowledge. However, most of this country specific knowledge is very complicated, it is difficult to directly access through the economic and trade. In the field of international business scholars think, this kind of understanding of the local market and knowledge, can only directly from experience to accumulate (Johanson and Vahlne 1977; Barkema, bell, and Pennings 1996). It can be seen that the establishment of overseas subsidiaries have local work experience, has become one of the positive factors to the performance of the company have.On the other hand, in the research of Multi-National Corporation international personnel policy, with particular attention to the Ministry of overseas subsidiaries’human resource allocation policy ’this one (Permutter,1969; Konopaske, Werner and Neupert,2002). In particular, CEO is from the Department of airborne or from local employment this problem has become a very important research subject (Gong,2003; Belderbos and heijyltjes,2005). This is because the subsidiary company CEO should play a link between the headquarters and the subsidiary role, but also to the facts in accordance with local commanders to operating subsidiary role (Bartlett and Ghoshal.1992). Therefore, CEO is sent from the appointed or pick out the right person for the company from the local, Honbe Kazuko between the coordination degree and local level played a vital role in the (Harzing,2001; Zeira.1976; tung,1982). According to the characteristics of the local subsidiary of industry and investment in the country’s culture. Subsidiary CEO is from the Department sent appointed, on business performance to obtain different results.This study is based on the financial situation of return on total assets 293 foreign-funded enterprises to determine the rate of. Detailed analysis of what factors influence enterprise achievement. From the investigation of this point of view, a subsidiary of the intangible assets owned by the innovation ability of science and technology, the higher the performance will also increase, but the impact of marketing ability is low. And that in South Korea, has a tendency to increase with the time of operation and gradually improve the performance of the company, although this trend is not very clear, but we may be in a financial crisis in such a big background, influenced by the influx of Western Multi-National Corporation impact of South korea. At last we found interesting, if directly from the Department sent a staff to serve as a subsidiary of CEO, then the subsidiary financial performance will decline. This tendency is very obvious in the global industry and national cultural differences between China and the investment is large will. This is the result of the foreign CEO in South Korea, a business difficulties, but these difficulties is the route one must take the localization of foreign enterprises.