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US firms – How global are they? A longitudinal study

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  • O'Hagan-Luff, Martha
  • Berrill, Jenny

Abstract

Many studies examine firm-level internationalisation using measures such as percentage foreign sales, number of foreign subsidiaries and the number of countries in which the firm operates, but few examine the changes in these measures over time. We conduct a longitudinal study of the internationalisation of Russell 1000 US firms between 1996 and 2010, with further categorisations by age, industry and size. We find little change in the number of purely domestic firms, but substantial overall increases in the extent and scope of internationalisation of MNCs, with periods of both de- and re-internationalisation. Firms appear to expand into new regions and increase their foreign sales in those regions in subsequent years. More than half of the MNCs in our sample experienced a decrease in foreign sales after the 2007/08 credit crisis, with relatively few decreases in the regions in which they operate. By 2010 we find that the majority of the MNCs in our sample are pursuing a semi-global strategy.

Suggested Citation

  • O'Hagan-Luff, Martha & Berrill, Jenny, 2016. "US firms – How global are they? A longitudinal study," International Review of Financial Analysis, Elsevier, vol. 44(C), pages 205-216.
    • Handle: RePEc:eee:finana:v:44:y:2016:i:c:p:205-216
    DOI: 10.1016/j.irfa.2016.01.021
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    Cited by:

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    2. Jenny Berrill & Martha O’Hagan-Luff & André Van Stel, 2021. "Analyzing the relationship between inward FDI, education and entrepreneurial activity at the macro-level," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 18, pages 52-73.
    3. Jenny Berrill & Martha O’Hagan-Luff & André Stel, 2020. "The moderating role of education in the relationship between FDI and entrepreneurial activity," Small Business Economics, Springer, vol. 54(4), pages 1041-1059, April.
    4. Yusoff, Iliyas & Chen, Chen & Lai, Karen & Naiker, Vic & Wang, Jun, 2023. "Foreign exchange exposure and analysts’ earnings forecasts," Journal of Banking & Finance, Elsevier, vol. 146(C).
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    6. Losilla, L. & Engler, A. & Otter, V., 2018. "Internationalization paths of fruit export companies from emerging economies: Are they regionally or globally oriented?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277400, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Longitudinal internationalisation; Geographic scope; Firm multinationality;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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