Shareholder Benefits from Corporate International Diversification
This study provides further evidence on the rates of return realized by the shareholders of multinational firms relative to those of purely domestic firms. The results indicate that the risk-adjusted returns realized by the shareholders are identical across the two groups except where the MNC operat...
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| Veröffentlicht in: | The Journal of finance (New York) 1984-12, Vol.39 (5), p.1325-1344 |
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| container_title | The Journal of finance (New York) |
| container_volume | 39 |
| creator | FATEMI, ALI M. |
| description | This study provides further evidence on the rates of return realized by the shareholders of multinational firms relative to those of purely domestic firms. The results indicate that the risk-adjusted returns realized by the shareholders are identical across the two groups except where the MNC operates in competitive foreign markets. In that case, MNC shareholders experience negative abnormal returns. The study also provides further evidence on the risk-reduction effect of international diversification. The results fail to support the hypothesis that the beta is a convex function of the degree of international involvement. Finally, the paper provides some preliminary evidence on the effect of corporate international diversification on shareholders' returns. It is found that abnormal returns rise by some 18 percent during the 14 months preceding the initial foreign diversification. |
| doi_str_mv | 10.1111/j.1540-6261.1984.tb04910.x |
| format | Article |
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| ispartof | The Journal of finance (New York), 1984-12, Vol.39 (5), p.1325-1344 |
| issn | 0022-1082 1540-6261 |
| language | eng |
| recordid | cdi_proquest_journals_194703068 |
| source | Periodicals Index Online; JSTOR Archive Collection A-Z Listing |
| subjects | Abnormal returns Advantages Arithmetic mean Beta Business structures Diversification Financial portfolios International Investment return rates Multinational corporations Portfolio diversification Product diversification Proxy reporting Proxy statements Rates of return Risk Shareholders Statistical analysis Stockholders Studies Systematic risk Variance analysis |
| title | Shareholder Benefits from Corporate International Diversification |
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