Analysis On The Performance Impact Of International Operation Of Chinese Insurance Companies

The emergence of Chinese firms in the global markets has drawn much attention in the last decade.Unfortunately their performance in the international competition is poor in general.Many arguments attribute the loss to the insufficient internationalization of Chinese financial institutions,especially insurance companies.However,in the existing literature,less attention has been paid to the internationalization of Chinese insurance companies and their performance.Targeting this gap,this study manifests the internationalization and performance of Chinese insurance companies by using data drawn from 29 medium to large insurance companies over a five-year period from 2010 to 2015.Based on formal scholar's studies,a U-shape relationship between internationalization and performance is hypothesized.But an inverted S-shape relationship is detected according to the results.It indicates an initially positive effect of internationalization on performance,a negative impact in the second stage and a positive effect in the last stage.Given the particularities of Chinese firms,a new argument is proposed in this article to explain the unique internationalization-performance relationship in the context of Chinese insurance companies.