Factors in multinational valuations: Transparency, political risk and diversification
AbstractThis 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Multinational Financial Management.
Volume (Year): 21 (2011)
Issue (Month): 1 (February)
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Web page: http://www.elsevier.com/locate/mulfin
Multinationals Valuation Transparency Geographic diversification Political risk;
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