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Globalization of corporate risk taking

Author

Listed:
  • Valentina Bruno

    (Kogod School of Business, American University, Washington DC, USA)

  • Hyun Song Shin

    (Princeton University, Princeton, NJ, USA)

Abstract

We explore how the interconnected nature of global finance affects corporate risk taking. We show that a common global factor known to be associated with fluctuations in cross-border banking is also strongly associated with common co-movements in corporate risk-taking across a diverse universe of international firms. Our study contributes to the international business literature as the first comprehensive investigation of how global financial conditions induce greater synchronization of risk-taking across regions and sectors.

Suggested Citation

  • Valentina Bruno & Hyun Song Shin, 2014. "Globalization of corporate risk taking," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(7), pages 800-820, September.
    • Handle: RePEc:pal:jintbs:v:45:y:2014:i:7:p:800-820
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    References listed on IDEAS

    as
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