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Do Multinational Operations Influence Firm Value? Evidence from the Triad Regions

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  • Brett Olsen

    (College of Business, University of Missouri at Columbia, U.S.A.)

  • B. Elango

    (College of Business, Illinois State University, U.S.A.)

Abstract

This paper examines the effect of multinational operations on firm value using a sample of firms from the three triad regions of the world. Using the Transnational Index (reported by the United Nations), a newer measure of multinational operations, this study helps explain some of the conflicting findings reported in the literature and highlights the importance of location of the firm as a factor in influencing the premium or discount in firm value due to multinational operations.

Suggested Citation

  • Brett Olsen & B. Elango, 2005. "Do Multinational Operations Influence Firm Value? Evidence from the Triad Regions," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 4(1), pages 11-29, April.
  • Handle: RePEc:ijb:journl:v:4:y:2005:i:1:p:11-29
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    References listed on IDEAS

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    1. Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 325-342, June.
    2. Bae, Sung C. & Noh, Seungwook, 2001. "Multinational corporations versus domestic corporations: a comparative study of R&D investment activities," Journal of Multinational Financial Management, Elsevier, vol. 11(1), pages 89-104, February.
    3. Christos Pantzalis, 2001. "Does Location Matter? An Empirical Analysis of Geographic Scope and MNC Market Valuation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 133-155, March.
    4. Lang, Larry H P & Stulz, Rene M, 1994. "Tobin's q, Corporate Diversification, and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1248-1280, December.
    5. Branch, Ben, 1974. "Research and Development Activity and Profitability: A Distributed Lag Analysis," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 999-1011, Sept./Oct.
    6. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    7. Alan Rugman, 1980. "Internalization as a general theory of foreign direct investment: A re-appraisal of the literature," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 365-379, June.
    8. Ike Mathur & Kyran Hanagan, 1983. "Are Multinational Corporations Superior Investment Vehicles for Achieving International Diversification?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(3), pages 135-146, September.
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    Cited by:

    1. Giovanni Garegnani & Emilia Merlotti & Angeloantonio Russo, 2015. "Scoring Firms’ Codes of Ethics: An Explorative Study of Quality Drivers," Journal of Business Ethics, Springer, vol. 126(4), pages 541-557, February.
    2. repec:spr:manint:v:47:y:2007:i:3:d:10.1007_s11575-007-0021-5 is not listed on IDEAS

    More about this item

    Keywords

    multinational operations; firm value; transnational index;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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