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

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  • Qian, Gongming

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.

Suggested Citation

  • Qian, Gongming, 1996. "The effect of multinationality measures upon the risk-return performance of US firms," International Business Review, Elsevier, vol. 5(3), pages 247-265, June.
  • Handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:247-265
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    References listed on IDEAS

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    Cited by:

    1. 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.
    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. repec:spr:manint:v:47:y:2007:i:3:d:10.1007_s11575-007-0019-z is not listed on IDEAS
    4. 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.
    5. Andersen, Torben Juul, 2012. "Multinational risk and performance outcomes: Effects of knowledge intensity and industry context," International Business Review, Elsevier, pages 239-252.
    6. repec:spr:manint:v:49:y:2009:i:6:d:10.1007_s11575-009-0015-6 is not listed on IDEAS
    7. Belén Blanco & Juan M. Garcia Lara & Josep A. Tribó Giné, 2009. "The Complementarity Between Segment Disclosure and Earnings Quality, and its Effect on Cost Capital," Working Papers 1005, Departament Empresa, Universitat Autònoma de Barcelona, revised Feb 2010.
    8. Michela Matarazzo & Gabriele Barbaresco & Resciniti Riccardo, 2016. "Effects of cultural distance on foreign acquisitions: evidence from italian acquired firms," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2016(3), pages 159-181.
    9. Aabo, Tom & Pantzalis, Christos & Sørensen, Helle & Toustrup, Malene Teilmann, 2016. "Corporate risk and external sourcing: A study of Scandinavian multinational firms," International Business Review, Elsevier, pages 1297-1308.
    10. 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, pages 725-735.
    11. 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.
    12. 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.

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