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Firm-level analysis of the international diversification of small integrated stock markets: Ireland 1999-2007

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  • Berrill, Jenny

Abstract

Domestic market indices may not be domestic in the pure sense of the word if they contain a large number of multinational corporations (MNCs). This is particularly relevant in a small open economy like Ireland. This paper shows that Ireland's strong position in attracting FDI has resulted in the domestic market index (the ISEQ index) becoming a marginal measure of the Irish corporate sector. Further results show that Ireland is gaining international exposure through foreign MNCs but this foreign exposure is not directly related to the regions where these firms do business.

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  • Berrill, Jenny, 2010. "Firm-level analysis of the international diversification of small integrated stock markets: Ireland 1999-2007," Research in International Business and Finance, Elsevier, vol. 24(2), pages 172-189, June.
  • Handle: RePEc:eee:riibaf:v:24:y:2010:i:2:p:172-189
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    References listed on IDEAS

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    1. 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.
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    9. Kalok Chan & Allaudeen Hameed & Sie Ting Lau, 2003. "What if Trading Location Is Different from Business Location? Evidence from the Jardine Group," Journal of Finance, American Finance Association, vol. 58(3), pages 1221-1246, June.
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    Cited by:

    1. Doyle, Eleanor & O’Connor, Fergal, 2013. "Innovation capacities in advanced economies: Relative performance of small open economies," Research in International Business and Finance, Elsevier, vol. 27(1), pages 106-123.
    2. Huang, Mei-Yueh & Lin, Jun-Biao, 2011. "Do ETFs provide effective international diversification?," Research in International Business and Finance, Elsevier, vol. 25(3), pages 335-344, September.
    3. Jouida, Sameh & Bouzgarrou, Houssam & Hellara, Slaheddine, 2017. "The effects of activity and geographic diversification on performance: Evidence from French financial institutions," Research in International Business and Finance, Elsevier, vol. 39(PB), pages 920-939.

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