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The effect of multinationality measures upon the risk-return performance of US firms

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  • Qian, Gongming
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    Abstract

    This study analyses the effect of a firm's overseas activities upon its risk-return performance for a sample of US firms (including multinational enterprises and domestic firms) by using different multinationality measures. The test results indicate that firms with a greater share of overseas activities have a greater opportunity to achieve a better risk-return performance than those with little foreign involvement. More importantly, for a firm which meets the basic requirement of multinationality (for MNEs as a whole), the number of foreign markets served has a minimal influence on its performance.

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    File URL: http://www.sciencedirect.com/science/article/pii/0969593196000091
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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 5 (1996)
    Issue (Month): 3 (June)
    Pages: 247-265

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    Handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:247-265

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    Related research

    Keywords: Multinationality Risk-Return Performance US Firms;

    References

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    1. Dunning, John H, 1979. "Explaining Changing Patterns of International Production: In Defence of the Eclectic Theory," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 269-95, November.
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    22. Peter Buckley & John Dunning & Robert Pearce, 1978. "The influence of firm size, industry, nationality, and degree of multinationality on the growth and profitability of the World’s largest firms, 1962–1972," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 114(2), pages 243-257, June.
    23. Buckley, Peter J & Dunning, John H & Pearce, Robert D, 1984. "An Analysis of the Growth and Profitability of the World's Largest Firms, 1972 to 1977," Kyklos, Wiley Blackwell, vol. 37(1), pages 3-26.
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    Cited by:
    1. Andersen, Torben Juul, 2012. "Multinational risk and performance outcomes: Effects of knowledge intensity and industry context," International Business Review, Elsevier, vol. 21(2), pages 239-252.
    2. Mauri, Alfredo J. & Neiva de Figueiredo, João, 2012. "Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing," Journal of International Management, Elsevier, vol. 18(1), pages 38-51.
    3. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
    4. Mauri, Alfredo J. & Lin, Jing & Neiva De Figueiredo, João, 2013. "The influence of strategic patterns of internationalization on the accuracy and bias of earnings forecasts by financial analysts," International Business Review, Elsevier, vol. 22(4), pages 725-735.
    5. Qian, Gongming & Li, Ji, 1998. "Multinationality, global market diversification, and risk performance for the largest U.S. firms," Journal of International Management, Elsevier, vol. 4(2), pages 149-170, October.
    6. Desbordes, Rodolphe, 2007. "The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis," International Business Review, Elsevier, vol. 16(6), pages 732-750, December.

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