IDEAS home Printed from https://ideas.repec.org/a/sae/jinter/v6y1995i2p113-132.html
   My bibliography  Save this article

A Performance Comparison of US MNEs and DMCs

Author

Listed:
  • Gongming Qian

    (Department of Economics, Lancaster University, UK
    Dr Gongming Qian, Department of Economics, Management School, Lancaster University LA1 4YW, UK.)

Abstract

This study provides a comparative analysis of the risk-return performance of US MNEs and US DMCs on the basis of both aggregate and segmental samples. It covers the firms from the Fortune listing of the 500 largest US industrial firms using a ten-industry classification. Several accounting and market measures are used as proxy variables for risk and profitability. To analyse the data and test the hypotheses, the paired difference test is employed to find statistically significant differences between them. If a firm reduces the variability of its profits, then the value of its shares will increase and, as a consequence, the wealth of shareholders will be enhanced. The results show that the MNEs, on the average, have outperformed their domestic counterparts in both profitability and risk. This implies that the capital market should differentiate between its valuation of MNE and DMC shares. Foreign activities by MNEs should therefore provide their shareholders with risk-return opportunities superior to those available to shareholders of DMCs. Investors may be expected to consider MNEs as a superior investment vehicle and reward their foreign operations.

Suggested Citation

  • Gongming Qian, 1995. "A Performance Comparison of US MNEs and DMCs," Journal of Interdisciplinary Economics, , vol. 6(2), pages 113-132, July.
    • Handle: RePEc:sae:jinter:v:6:y:1995:i:2:p:113-132
    as

    Download full text from publisher

    File URL: http://jie.sagepub.com/content/6/2/113.abstract
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jinter:v:6:y:1995:i:2:p:113-132. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.