Emerging market multinationals : an analysis of performance and risk characteristics

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dc.contributor.authorAybar, C. Bulent
dc.contributor.authorThirunavukkarasu, Arul
dc.date.accessioned2010-11-03T13:46:03Z
dc.date.available2010-11-03T13:46:03Z
dc.date.issued2005
dc.descriptionAuthor's Original
dc.description.abstractThis study explores the risk and performance characteristics of emerging market multinationals (EMNCs). We use a sample composed of 79 EMNCs from 15 countries located in Africa, Asia, Eastern Europe-Russia, and Latin America. Our risk and performance analyses are based on monthly share price returns collected over 1996-2003 period and annual accounting data. We find that EMNCs on average perform better than their respective country market indices, a widely used EM benchmark, S&P500 and, global market index (MSCI-World) during the period of analysis. Our sample firms on average earn 13.21% return on assets, 8.97% return on equity, and 11.96% return on invested capital. We also find that EMNC returns are highly volatile, and despite some level of diversification achieved by EMNCs, their returns remain highly sensitive to local market shocks. The cross-sectional analysis of the determinants of the performance of the EMNCs reveals that leverage and systematic risk are the most important factors, followed by size. Our analysis indicates that performance is not affected by the degree of internationalization and EMNC investments in developed markets have a positive impact on the value. Finally, our results indicate that EMNCs in less risky emerging markets enjoy higher firm value.en_US
dc.description.bibliographicCitationAybar, B. & Thirunavukkarasu, A. (2005). Emerging Market Multinationals: An Analysis of Performance and Risk Characteristics. Journal of Asia-Pacific Business, 6(2), 5-39. doi:10.1300/J098v06n02_02en_US
dc.format.extent453162 bytesen_US
dc.format.mediaTypeapplication/pdfen_US
dc.identifier.urihttps://hdl.handle.net/10474/1277
dc.language.isoen_USen_US
dc.publisherThe Haworth Press, Inc.en_US
dc.relation.requiresAdobe Acrobat Readeren_US
dc.rightsPublisher retains all ownership rights. Further reproduction in violation of copyright is prohibiteden_US
dc.subject.othermultinational corporationsen_US
dc.subject.otheremerging marketsen_US
dc.subject.otherinternational financeen_US
dc.titleEmerging market multinationals : an analysis of performance and risk characteristicsen_US
dc.typeArticleen_US

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