Browsing by Author "Ficici, Aysun"
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Item Changes in capital structure of listed emerging market firms in the aftermath of the 2007 – 2008 global financial crisis(Southern New Hampshire University, 2017-01-18) An, Botao; Aybar, Bulent; Samii, Massood; Dhakar, Tej; Ficici, AysunThe 2007 – 2008 global financial crisis led to one of the worst recessions in history and created enormous adverse impacts on global demand, equity and debt markets around the world. Globalization increases competition for emerging-market (EM) firms both inside and outside their domestic market. One of the key challenges that they have is how to finance their growth opportunities, especially under these adverse circumstances. The impacts on most developed-country (DC) firms were devastating while EM companies experienced different levels of effects due to the aftermath of the crisis. In this study, I explore how patterns of EM firms’ corporate financing decisions have changed in the aftermath of the global financial crisis. Using data from 10,860 listed firms from 22 emerging markets, which were classified by MSCI between 2000 and 2014, results show that EM listed firms with more growth options, have less profitability, larger size, more tangible assets, higher business risk, higher tax payments, higher degree of internationalization, can carry more debt. I then analyze the changing dynamic of EM listed firms’ leverage choices; results suggest capital structure determinants have different impacts on leverage prior to, during, and after global financial crisis. There is a delayed effect of impacts of the global financial crisis on EM firms’ leverage policy; creditors only took precautions on the adverse environment during the crisis period (2007 – 2009). Nevertheless, there is a changing pattern on EM firms’ capital structure determinants during recent decades. In the 1990s, EM firms’ debt usage decisions were dominated by institutional factors, and impacts of institutional factors on firms’ debt usages gradually transfer to firm-specific factors after the 1997 Asian financial crisis. Previous studies suggested EM firms’ leverage policies can be explained by the “pecking-order theory” and the “agency theory” before the 2007 – 2008 global financial crisis (Fan et al., 2014; Fernanedes, 2011). In this paper, I found that the “pecking-order theory” maintains its effectiveness in EM firms’ leverage policies, and the “trade-off theory” gradually shows its effectiveness throughout the sample period. Unlike EM firms in the whole sample, internationalized EM firms also follow different changing patterns in leverage policy determinants during the sample period, and they experienced the impact of the global financial crisis immediately. Due to additional risk exposure of internationalization, internationalized EM firms’ leverage policies show support to the “pecking-order theory,” but the “trade-off theory” and the “agency theory” are also supported in sub-sample periods. (Author abstract)Item Essays on tax systems and corporate tax avoidance: the effect on MNC location choices and firm value(Southern New Hampshire University, 2016-12-31) Baker, Michael A.; Aybar, Bulent; Nugent, Nicholas; Ficici, Aysun; Dhakar, TejThe following dissertation is structured as two related essays on tax systems and corporate tax avoidance. The first essay focuses on the firm level impact of a government’s transition from a worldwide tax system to a territorial tax system. Utilizing a case study approach, ten firms within the tax jurisdiction of the United Kingdom are analyzed pre- and post-transition. Firm behavior is evaluated pre- and post-transition through firm level incentives to shift earnings and firm level utilization of tax havens (i.e. subsidiaries located in tax advantageous areas). Despite significant efforts put forth by governments to reduce corporate tax avoidance and tax haven utilization, case study findings reveal little evidence that territorial tax systems promote such firm behavior. The second essay focuses on the firm level change in share value, and the associated return to holding such shares, for firms that engage in corporate inversion. Cumulative abnormal returns are reviewed for a set of inverting firms to determine whether shareholders value corporate inversion transactions. In addition, this essay reviews the relationship between such cumulative abnormal returns and certain firm level incentives to shift earnings, tax haven utilization, and other firm characteristics such as permanently reinvested foreign earnings. Results reveal that the level of both permanently reinvested earnings and intangible assets impact the value shareholders place on the shares of firms engaged in corporate inversions. (Author abstract)Item The impact of international cross-listings on firm value after the Sarbanes–Oxley Act: Evidence from American depositary receipts(Southern New Hampshire University, 2012-03) Cao, Man Minh; Aybar, Bulent; Samii, Massood; Ficici, Aysun; White, CharlesThe Sarbanes-Oxley Act is formally named the Public Company Accounting Reform and Investor Protection Act of 2002. The act is arguably one of the most significant reforms to affect the U.S. stock markets since the Securities Exchange Act of 1934. This study compares valuation implications of ADR announcements before and after the introduction of the act. A total of 234 ADR announcements are analyzed over a time frame spanning from 1994 to 2010 by employing event study methodology. Even though several studies attempt to explore the effects of the act on the value of firms issuing American Depository Receipts (ADR), reported results are either negative or positive. The empirical results presented in this study indicate that the impact on ADR issuing firms is not negative. The observed cumulative abnormal returns (CARs) reveal that investors on average positively react to ADR issue announcements during the post Sarbanes-Oxley period. However, empirical results do not lend support for the hypothesis that CARs are significantly different during the two periods analyzed in the study.Item Incentives for sustainability in the European Union: Analysis of institutional factors, governance issues, and tax policy(2014-03-27) Zilch, Kathleen Byrne; Samii, Massood; Nugent, Nicholas; Ficici, Aysun; Caruso, KarinSustainability and the debate over climate change have become hot topics in the literature and news. Global reactions to the mounting scientific evidence have evolved rapidly in recent years, as an increased sense of urgency has emerged. On September 27, 2013, the IPCC announced that there is a 95% probability that climate change has been caused by humans. This announcement, in conjunction with extreme weather events in recent years, has created even more urgency for policymakers to address climate change issues. Since the EU has been successful in decreasing its GHG emissions, its institutional factors, governance structure, and energy tax policies are examined. Institutional structures vary greatly between developed and developing countries, which may impact the “green-ness” of firms operating within those regions. Previous studies examine institutional factors in both developed and developing nations; however, the literature lacks sufficient research in the area of “green-specific” institutional factors. The “green-ness” of firms in developed versus developing countries is examined. The “greenness” of firms from EU-member nations are also compared to those based in both developed and developing countries. The Newsweek Green Index is tested for significance. Governance issues, specifically agency problems, are abundant in efforts to reduce global carbon emissions. Extensive research has been conducted related to firm-level governance; however, research is lacking in the area of agency issues inherent in global collaboration. Despite the EU’s multilateral governance structure, the EU was one of the few Kyoto members to reach its emissions reduction target for the period ended 2012; however, this could be offset by the inaction of developing countries. Since the EU “green” policies have focused on energy-related emissions, Eurostat’s emission data relative to developing countries (excluding deforestation) is tested. Tax policy is one of many methods which countries can use to reduce GHG emissions. Previous studies have focused on cap and trade as well as international tax competition; however, the literature lacks sufficient research on the effectiveness of the EU’s energy tax policies. This section examines the effectiveness of the 2003 EU Energy Taxation Directive in encouraging “green” activities. Eurostat’s “implicit tax rate on energy” is tested for significance. (Author abstract)Item Innovation and firm performance: A comparative study of rapidly developing economies & the European Union(Southern New Hampshire University, 2015-03-31) Caron, Michelle I.; Samii, Massood; Nugent, Nicholas; Dhakar, Tej; Ficici, AysunThis dissertation analyzes the innovation efforts of large, technology-intensive firms as they pertain to firm performance. The research examines two distinct groups of technology intensive firms deriving from countries with opposing stages of economic development and contrasting demographics of their populations: Rapidly Developing Economies (RDEs) and European Union (EU) countries. Technology enables firms to re-imagine their core competencies, improve existing processes, and model improved processes and routines. By understanding the return on investing in innovative pursuits, firms could adapt strategic business models to capture firm growth that has previously been under-developed and secure a competitive advantage. Likewise, local and national government agencies could offer specific incentives to help ensure longevity and sustainability to their position in world markets and identify previously untapped trading partners and strategic alliances. In addition, strategists would be better equipped to support and target R&D initiatives during declines in the market and/or industry. The results are reported according to manufacturing and service industries. The studies indicate that the most profitable firms derive from the service sector versus manufacturing. Custom Computer Programming firms represents the highest profit margins in EU countries and Computer Programming Services represents the highest profit margins for RDE countries. Despite more firms being represented from RDE than the EU, these firms do not spend more than large, technology firms from the EU. Upon investigating which group acquired more patents, it was found that RDE countries have more patents granted than EU countries. In addition, RDEs currently have more high-tech exports as a percentage of manufactured goods per capita than EU countries. The impact of the global recession appeared to have an impact on large, technology-intensive firms in the EU in particular, while a majority of RDE firms have already returned to or have exceeded pre-recession levels. The incorporation date was also examined to determine both the age of firms included in the study, as well as the labor capital of both groups. It was determined that RDE firms included in the study hire significantly more employees than EU firms, and more manufacturing employees were hired than those in the service sector.(Author abstract)Item Internalization strategies and value implications of Latin American emerging market multinationals(Internext, 2009) Ficici, Aysun; Aybar, C. BulentThis study investigates the Internationalization strategies and their value implications of Latin American Emerging Market Multinationals (LAEMMs). We examine 66 mergers and acquisitions (M&A) announcements, 20 joint venture (JV) announcements and 9 Strategic Alliance (SA) announcements associated with LAEMMs during the sample period of 1991-2005. First, the paper explores the effects of cross-border expansion patterns on firm value creation. Second, it examines market reaction to the announcements of cross-border expansion patterns. Third, it evaluates firm performance in relation to the cross-border expansion activities. This study finds that most LAEMMs do not earn significantly positive abnormal returns during the event windows defined in this study. However, it is generally evident that there is value creation in international expansion activities. According to the event-study results, value creation is mostly associated with SAs. This finding is consistent with previous research. It is also indicated that most SA announcements are received by the market positively. JVs also experience value creation during the event windows utilized in this study. However, value creation of JVs is not to the extent that of SAs. Market reaction to JV announcements is also positive, but not to the degree of SAs.Item Investor heterogeneity: Price momentum and trading volume reactions of foreign listed firms(Southern New Hampshire University, 2018-09-27) Zhang, Yan; Aybar, Bulent; Samii, Massood; Ficici, Aysun; Dhakar, TejInvestor homogeneity is an important assumption in the efficient market hypothesis. However, viewing the financial markets from the eye of a professional trader, they are never efficient. Financial markets are composed of heterogeneous investors with the aims of speculation. Due to the large gap between theory and reality, many anomalies often occur. Price momentum as one of the commonly seen anomalies attracts the most attention from both scholars and practitioners. Prior finance literature documents that momentum is caused by investors’ differential beliefs or investor heterogeneity. Recognizing the importance of investor heterogeneity prompts scholars to incorporate it into asset pricing models, but they face a series of challenges. The objective of this study is to address the current challenges of quantifying and testing predictions on investor heterogeneity. By analyzing investors’ compositions, I argue that foreign listed firms are natural habitats of diverse investors. Compared with pure US firms, foreign listed firms provide perfect market venues to study investor heterogeneity. Using stock data of 2,200 NYSE and NASDAQ firms from 2000 to 2017, I classified them into higher/low order foreign listed firms and pure US firms. Momentum is tested by the Winner and Loser strategy, while trading volume is modeled by a regression of absolute return on volume turnover. This study finds that the three groups of firms have long term momentum in decreasing order, and investor heterogeneity plays an important role in price momentum. From phenomenon to essence, this study constructs a novel paradigm to quantify and forecast investor heterogeneity. It is also the first study to investigate the microstructural explanation of momentum and trading volume, and to state the relationship between liquidity and heterogeneity. The “Two Period Order Flow Model” and the “Heterogeneous Market Hypothesis(HMH)” also have important implications and contributions in both academics and industry. The conclusions of this research can benefit professional traders and option strategists in designing their trading strategies; it can help researchers avoid using proxied variables to quantify investor heterogeneity, build heterogeneous asset pricing models and create theoretical foundations for technical analysis; the HMH is also an alternative theory in challenging the EMH; and it can also help regulators better understand the financial markets. (Author abstract)Item Knowledge transfer in multinational enterprises: intra-firm and inter-firm perspectives(Southern New Hampshire University, 2016-05-17) Wang, Lingling; Samii, Massood; Ficici, Aysun; Aybar, Bulent; Collins, J. StephanieThis dissertation aims to explore one of the most important aspects of knowledge management, knowledge transfer in multinational enterprises (MNEs). It examines this knowledge transfer process from two distinct perspectives: intra-firm and inter-firm. Intra-firm transfer of knowledge refers to the knowledge flow between headquarters and subsidiaries and inter-firm transfer is defined as the knowledge transfer between partners in international joint-ventures (IJV). Specifically, it attempts to investigate the factors that influence the intra-firm knowledge transfer process and the willingness to share knowledge between partners in IJVs, in order to improve the performance of MNEs. Since willingness to share knowledge between partners is more complex than that between parent and subsidiary due to the difference in ownership structure, if MNEs are able to manage the willingness to share knowledge in IJVs, then dealing with it between parent and a subsidiary should be much easier. To examine intra-firm knowledge transfer, system dynamics (SD) modelling is adopted and simulations demonstrate that both the transmission willingness and capacity, and absorptive willingness and capacity are important for MNEs to enhance its performance, since knowledge transfer is a two-way communication process. In order to reach a win-win situation, both headquarters and subsidiaries should be willing to share knowledge and learn from each other. To improve the effectiveness of knowledge transfer, ways to enhance transmission willingness and absorptive capacity, and cultural factors that influence cross-border communication are explored and discussed. In inter-firm knowledge transfer, most of the research literature examines at the absorptive capacity of recipients of knowledge, but does not examine the willingness to share knowledge. In fact, knowledge will not be effectively and efficiently transferred between partners if only capacity is involved. Therefore, the willingness to share knowledge is equally important in the knowledge transfer process. After a survey of literature, several factors that may influence willingness to share knowledge between partners in IJVs are identified. Then questionnaire was sent out and based on the responses of the survey, three case studies are employed to verify those factors that determine the willingness to share knowledge in IJVs in China. This dissertation attempts to get a better understanding of the intra-firm and inter-firm knowledge transfer in academia and provide some useful insights to practitioners in order to effectively and efficiently manage knowledge in MNEs and enhance firms’ performance, since knowledge is the most important strategic asset that firms possess and is closely related to their sustainable competitive advantage. (Author abstract)Item Links amongst innovation, corporate social responsibility, sustainability, and internationalization processes of emerging market multinationals: the case of Turkish business groups(Southern New Hampshire University, 2018-03-07) Ar, Anil Yasin; Ficici, Aysun; Samii, Massood; Dhakar, Tej; Samii, LeilaThe purpose of this dissertation is to explore the Emerging Market Manufacturing Business Groups’ innovation processes through their internationalization activities and the interplay between innovation, corporate social responsibility, and sustainability. This study focuses on the business dynamics of manufacturing Turkish Business Groups (TBGs), namely Turkish Holding Companies. It gives a clear illustration of how manufacturing can be innovative, responsible, and sustainable while internationalizing and exceling the firms’ competitive advantage through utilizing both foreign and domestic resources. The study comprises Turkish manufacturing multinationals that operate in the continent of Europe. It examines 15 parent firms and 72 subsidiaries that conduct manufacturing operations in the European countries. The study employs explanatory case study approach. The results demonstrate that manufacturing operations of TBGs can be innovative, social responsible, and environmentally sustainable while internationalizing into advanced countries. (Author abstract)Item Links Amongst Innovation, Corporate Social Responsibility, Sustainability, and Internationalization Processes of Emerging Market Multinationals: The Case of Turkish Business Groups.(Southern New Hampshire University, 2018-06-25) Ar, Anil Yasin; Ficici, Aysun; Samii, Massod; Dhakar, Tej; Samii, LeilaThe purpose of this dissertation is to explore the Emerging Market Manufacturing Business Groups’ innovation processes through their internationalization activities and the interplay between innovation, corporate social responsibility, and sustainability. This study focuses on the business dynamics of manufacturing Turkish Business Groups (TBGs), namely Turkish Holding Companies. It gives a clear illustration of how manufacturing can be innovative, responsible, and sustainable while internationalizing and exceling the firms’ competitive advantage through utilizing both foreign and domestic resources. The study comprises Turkish manufacturing multinationals that operate in the continent of Europe. It examines 15 parent firms and 72 subsidiaries that conduct manufacturing operations in the European countries. The study employs explanatory case study approach. The results demonstrate that manufacturing operations of TBGs can be innovative, social responsible, and environmentally sustainable while internationalizing into advanced countries.Item A novel decision - Making model of the globalizing consumer behavior: Evidence from Chinese middle-class consumers who purchase luxury goods from overseas markets(Southern New Hampshire University, 2019-04-04) Liu, Yang; Ficici, Aysun; Samii, Massood; Dhakar, Tej; Wang, Ling LingThe goal of this study is to propose a valuable decision-making model in examining Chinese middle-class consumer behavior, specifically the new purchasing behavior regarding luxury goods. Chinese middle-class consumers purchase seventy percentage luxury goods from oversea markets, although they are available in their domestic market. The only difference between the Chinese market and foreign markets is the price as in China, price is much higher than in other markets. However, this observation conflicts with previous theories of the luxury goods consumer behavior, such as the Veblen Effects, the Bandwagon Effect, and the Snob Effect, all of which imply luxury consumers are not price sensitive. This study is both qualitative and quantitative as it provides a conceptual propositional model and tests it by variety of empirical regression models. The results agree with the previous research that illustrate Chinese middle-class consumers are also price insensitive to luxury goods. They are pushed out to the global market by the luxury goods companies, which attempt to limit the purchasing channels in China. (Author abstract)Item The obsolescence of patent proxies as country and firm innovation measures(Southern New Hampshire University, 2016-12) Chambers, John G. II; Samii, Massood; Aybar, Bulent; Ficici, Aysun; Nugent, Nicholas; Dhakar, TejStrategic practitioners and business scholars continuously analyze and study competitive advantage through innovation, seeking measurements that provide evidence of cause and effect. As a policy matter and academic matter, the impact of intellectual property rights on innovation is still debated. Despite the argument from authority via some bureaus, institutions and vested interests, who do emphasize some empirical studies, the matter remains unsettled. This would appear perplexing considering the volumes of scholarship surrounding this topic. This dissertation encourages a stepping back and, via refreshed considerations of classical and contemporary international business literature, a baselining of the analysis. A means to balance the holistic with the detailed is necessary; innovation proxies, such as R&D spending or patent activity, are suspect given the fluid nature of innovation. Offering an enhancement to the value chain paradigm, a means to assess innovation as comparative advantage demands respect to the holistic activities of firms and country institutions. Property rights are often employed to show economic growth and innovation; however, property rights require parsing to determine if physical property rights alone are an impetus to innovation without reliance on intellectual property rights. The usage of patent as innovation proxy is challenged in this thesis. Thus, the argument is constructed by viewing multiple, theoretical drivers that effect the firm as well as country-specific institutions. The results indicate that patent protection is not correlated with macro-level views of innovation, and it is not an appropriate proxy for innovation unless confined in the narrowest of scenarios. (Author abstract)Item The optimization of energy portfolio management (EPM): Framework and simulation(Southern New Hampshire University, 2011-09) Chang, Yan; Samii, Massood; Nugent, Nicholas; Dhakar, Tej; Ficici, AysunWith the rapid increasing energy needs from all kinds of energy consumers, energy prices have increased dramatically, especially the price for fossil energy. How to lower energy consumption cost, which energy is optimal choice, and how social costs of energy will impact on energy consumption, these questions are addressed in this dissertation via Energy Portfolio Management (EPM) model with framework and simulation. The EPM model is established to find out an optimal energy solution which can provide useful guidance to energy consumers and policymakers about how to select optimal energy portfolio with lower cost and less risk. The conceptual framework presents the methodology of EPM, while EPM simulations demonstrate the selection of optimal energy choices, and further, the impacts of social cost on the optimal energy portfolio in the case of United States. The findings from EPM Simulations fall into three categories: 1)without considering social cost, biomass and coal are optimal choices and should consume at the maximum; 2)considering single social cost, coal and nuclear are favored only if social cost of coal is less than 100% of its private cost or social cost of nuclear is less than 300% of its private cost, otherwise, biomass is optimal; 3)considering all sorts of social costs simultaneously, optimal energy portfolio varies with the level of social cost: with low and central level of social cost, coal and nuclear are preferable due to their stable and lower cost; with high level of social cost, biomass, nuclear and potential natural gas are still favored, however the optimal solution will switch to favor biomass (if social cost of coal is more than 300% of its private cost or social cost of nuclear is 830% more than its private cost.Item A study of EMNEs serving the base of the pyramid in South Asia: innovative products from EMNEs(Southern New Hampshire University, 2017-04-26) Rayamajhi, Suman; Samii, Massood; Dhakar, Tej; Nugent, Nicholas; Ficici, AysunThe study explores that emerging market multinational enterprises (EMNEs) are serving the base of the pyramid (BOP) in their home market and beyond. EMNEs are growingly recognizing the benefits of serving BOP consumers in other markets, which are not dissimilar to their home market. Appropriate innovations from EMNEs are instrumental in serving BOP consumers in their home market and other similar markets. The study draws upon multiple theories in the areas of innovation, BOP, and internationalization. The study primarily uses a conceptual framework, case studies of Indian EMNEs along with a descriptive statistics model that applies data from the survey performed in South Asia. This study analyzes the trade interaction of EMNEs and product demand of BOP consumers. The theory of product innovation applied to EMNEs points to market similarities, including product affordability, product quality, and product usefulness, among others, as the driving forces of demand for these markets. EMNEs’ products features, targeted towards BOP market are well suited to the demand of the BOP consumers. The findings suggest that EMNEs are largely serving the BOP consumers in their home market and similar markets abroad compared to MNEs from the developed economies. The findings from the research indicate that BOP product elements are directly associated with the consumers’ acceptability of innovative BOP products. The data collected from the field survey strongly supports the findings that the BOP product elements (affordability, multipurpose, simplicity, and usefulness) are important factors in building innovative products to serve the consumer segment. The findings from the research also contribute to the BOP product study by providing insights of innovative BOP product strategies that firms need to implement in serving BOP consumers. (Author abstract)Item Unbundling the supply chain for the international music industry(Southern New Hampshire University, 2010) Renard, Stanislas; Fellman, Philip Vos; Ficici, Aysun; Nugent, Nicholas; Goodrich, Peter SpangThis thesis analyses the international music industry supply chain. The descriptive background presented entails publishing rights, the vertical integration of the historical music industry, the historical position of the artist, and follows the evolution of the digital technology, distributive production, and peer-to-peer file sharing networks in order to build a prescriptive model which addresses the following three research questions. Given the revolution in technology in the music industry where do the Majors fit? What is the positioning of the artist in the new digital technology? And given the change of position of the Majors and the positioning of the artist what are the descriptive and prescriptive possibilities should the Majors disappear and be replaced by alternative elements in the music industry supply chain? The present study considers the Music Industry as the trade of prerecorded music in any format and assumes responsibility regarding the results presented up to July 2009. This thesis considers the four Majors as being part of the Music Industry rather than an absolute representation of the industry itself. Also this dissertation’s primary concern is the bundling and unbundling of the music industry’s supply chain and not the bundling of products within that supply chain. (Author abstract)Item Value implications of emerging market multinationals' cross-border expansion patterns : an analysis of M&As, JVs and SAs(Southern New Hampshire University, 2005) Ficici, Aysun; Bulent, Aybar; Samii, Massood; Nugent, Nicholas; Aliouche, El-HachemiThe objective of this study is to examine the value implications of cross-border expansion patterns of Emerging Market Multinationals (EMMs) and to observe market reaction to these patterns. It primarily focuses on mergers and acquisition (M&A), joint venture (JV) strategic alliance (SA) and announcements that took place during the period of 1991-2003. EMMs considered in this study are listed in UNCTAD's world investment report (2002), as the top 50 non-financial Transnational Corporations (TNCs) from developing economies and the largest 25 non-financial TNCs based in Central and Eastern Europe. This study employs event study and examines a total of 982 international expansion activities entailing 436 (M&As), 387 (JVs) and 159 (SAs) performed by 66 EMMs. The results indicate that market reaction to M&As is generally negative. Hence, EMMs that expand through M&As create little or no value. Similar results are evident for the JVs. SAs seem to generate more positive abnormal returns, but not statistically significant. While Asian and Latin American EMMs' expansions create value for shareholders, Eastern European EMMs' expansions are value destructive. A negative association between size of the acquisition and abnormal returns is illustrated suggesting value destructive impact of larger acquisitions. Acquisitions of SOEs are also value destructive. International experience and familiarity with the target market proved to be insignificant. Good governance is positively associated with cumulative abnormal returns. Diversified EMMs' cross-border acquisitions tend to create value for shareholders; however, hi-tech EMMs' cross-border acquisitions are value destructive. Some target country characteristics have a significant impact on acquiring firms' value creation. While more developed institutional infrastructure and overall level of economic development have positive impact on abnormal returns, geographic and cultural proximity proved to be insignificant. Cross-sectional and logistic regression analyses also support these results. Yet, the impact of all three expansion patterns on the performance of EMMs is positive. The improvement in performance is evident in all three years after the announcement. The performance in the third year surpasses the first two years. It is also indicative from the result that as EMM performance improves with time, multinationality measure decreases - stating a negative relationship between performance and multinationality. (Author abstract)