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Factors in multinational valuations: Transparency, political risk and diversification

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  • Kyaw, NyoNyo A.
  • Manley, John
  • Shetty, Anand

Abstract

This paper examines the role of geographic diversification, transparency, and political risk, in the determination of the value of multinational corporations (MNCs). Using alternative measures for geographic diversification, this paper finds the evidence supporting the positive effect of the degree of multinationality on the firm value. The evidence also provides support for the theories that argue that political risk and transparency have negative impact on the MNC value.

Suggested Citation

  • Kyaw, NyoNyo A. & Manley, John & Shetty, Anand, 2011. "Factors in multinational valuations: Transparency, political risk and diversification," Journal of Multinational Financial Management, Elsevier, vol. 21(1), pages 55-67, February.
    • Handle: RePEc:eee:mulfin:v:21:y:2011:i:1:p:55-67
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    Cited by:

    1. Shetty, Anand & Manley, John & Kyaw, Nyonyo, 2019. "The impact of exchange rate movements on mergers and acquisitions FDI," Journal of Multinational Financial Management, Elsevier, vol. 52.

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