International Diversification and Firm Value


In this paper the impact of multinationalism is examined using a valuation model incorporating geographically segmented accounting information. The results indicate that multinational companies are more highly valued than their domestic counterparts and that the valuation difference lies in all their operations and not just their foreign operations. The value advantage of MNCs appears too large to be realistically explained by cost of capital reductions and would support either that high value firms become multinationals, rather than MNCs gaining valuation benefits from foreign investments, or a pricing fad. Preliminary results support the latter explanation. Copyright Blackwell Publishers Ltd 1998.

Similar works

Full text


Research Papers in Economics

Provided original full text link
Last time updated on 7/6/2012

This paper was published in Research Papers in Economics.

Having an issue?

Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.