IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

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

  • Qian, Gongming
Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal International Business Review.

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

    in new window

    Handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:247-265
    Contact details of provider: Web page:

    Order Information: Postal:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Wolf, Bernard M, 1977. "Industrial Diversification and Internationalization: Some Empirical Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 26(2), pages 177-91, December.
    2. Lloyd, William P., 1975. "International portfolio diversification of real assets: An inquiry," Journal of Business Research, Elsevier, vol. 3(2), pages 113-120, April.
    3. W. Chan Kim, 1989. "Note---Developing a Global Diversification Measure," Management Science, INFORMS, vol. 35(3), pages 376-383, March.
    4. Sushil Vachani, 1991. "Distinguishing Between Related and Unrelated International Geographic Diversification: A Comprehensive Measure of Global Diversification," Journal of International Business Studies, Palgrave Macmillan, vol. 22(2), pages 307-322, June.
    5. 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.
    6. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    7. Thomas L Brewer, 1993. "Government Policies, Market Imperfections, and Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan, vol. 24(1), pages 101-120, March.
    8. Froot, Kenneth A & Stein, Jeremy C, 1991. "Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1191-217, November.
    9. Hughes, John S. & Logue, Dennis E. & Sweeney, Richard James, 1975. "Corporate International Diversification and Market Assigned Measures of Risk and Diversification," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(04), pages 627-637, November.
    10. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    11. Allen Michel & Israel Shaked, 1986. "Multinational Corporations vs Domestic Corporations: Financial Performance and Characteristics," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 89-100, September.
    12. Robert M Grant, 1987. "Multinationality and Performance among British Manufacturing Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 18(3), pages 79-89, September.
    13. Stehle, Richard E, 1977. "An Empirical Test of the Alternative Hypotheses of National and International Pricing of Risky Assets," Journal of Finance, American Finance Association, vol. 32(2), pages 493-502, May.
    14. 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.
    15. Fatemi, Ali M, 1984. " Shareholder Benefits from Corporate International Diversification," Journal of Finance, American Finance Association, vol. 39(5), pages 1325-44, December.
    16. Morck, R. & Yeung, B., 1991. "Why Investors Value Multinationality," Working Papers 282, Research Seminar in International Economics, University of Michigan.
    17. Agmon, Tamir & Lessard, Donald R, 1977. "Investor Recognition of Corporate International Diversification," Journal of Finance, American Finance Association, vol. 32(4), pages 1049-55, September.
    18. Hirsch, Seev & Lev, Baruch, 1971. "Sales Stabilization Through Export Diversification," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 270-77, August.
    19. Dunning, John H, 1973. "The Determinants of International Production," Oxford Economic Papers, Oxford University Press, vol. 25(3), pages 289-336, November.
    20. Will Mitchell & J Myles Shaver & Bernard Yeung, 1993. "Performance Following Changes of International Presence in Domestic and Transition Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 647-669, December.
    21. 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.
    22. Constatinos C Markides & Christopher D Ittner, 1994. "Shareholder Benefits from Corporate International Diversification: Evidence from U.S. International Acquisitions," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 343-366, June.
    23. Errunza, Vihang R & Senbet, Lemma W, 1981. "The Effects of International Operations on the Market Value of the Firm: Theory and Evidence," Journal of Finance, American Finance Association, vol. 36(2), pages 401-17, May.
    24. Chwo-Ming J Yu & Kiyohiko Ito, 1988. "Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 449-460, September.
    25. Israel Shaked, 1986. "Are Multinational Corporations Safer?," Journal of International Business Studies, Palgrave Macmillan, vol. 17(1), pages 83-106, March.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:5:y:1996:i:3:p:247-265. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.