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Measuring the impact of globalization : an analysis of the risk and return of multinational firms

Show simple item record Broaden, Charlotte Samii, Massood 2010-11-17T14:43:21Z 2010-11-17T14:43:21Z 2001-02-28
dc.description Version of Record en_US
dc.description.abstract There have been several debates in the literature over the issue of multinational firms and their impact on profitability and risk. Previous literature suggests that multinational firms decrease their systematic risk owing to the diversification benefit of having cash flows in different countries. More recent empirical evidence has surfaced suggesting the contrary in that multinationals may increase their risk due to an increase in the standard deviation of cash flows from such additional risk factors as political risk, exchange rate risk, and information asymmetry. In conjunction with lower risk, it has been posited that firms have higher leverage. Empirical studies on profitability have shown similar rates of return for both domestic and international firms. Through the use of pooled regression analysis this paper finds support for the hypothesis that multinational firms experience lower debt, and lower profitability. en_US
dc.format.extent 244248 bytes en_US
dc.language.iso en_US en_US
dc.publisher Southern New Hampshire University en_US
dc.relation.requires Adobe Acrobat Reader en_US
dc.rights Authors retain all ownership rights. Further reproduction in violation of copyright is prohibited en_US
dc.subject.other globalization en_US
dc.subject.other international financial markets en_US
dc.title Measuring the impact of globalization : an analysis of the risk and return of multinational firms en_US
dc.type Article en_US
dc.description.bibliographicCitation Broaden, C. & Samii, M. (2001). Measuring the impact of globalization: An analysis of the risk and return of multinational firms. Retrieved from en_US
dc.format.mediaType application/pdf en_US

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