scholarly journals A Study on the Impact of International Diversification on Firms' R&D intensity

2015 ◽  
Vol null (60) ◽  
pp. 257-280
Author(s):  
윤소라
Keyword(s):  
International Diversification ◽  
The Impact

scholarly journals International diversification and firm’s value: evidence from developing nations

2016 ◽  
Vol 26 (2) ◽  
pp. 166-183 ◽  
Author(s):  
A.N. Bany-Ariffin ◽  
Bolaji Tunde Matemilola ◽  
Liza Wahid ◽  
Siti Abdullah
Keyword(s):  
Financial Performance ◽  
Multinational Corporations ◽  
Multinational Firms ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
International Diversification ◽  
Technological Advancement ◽  
Reverse Causality ◽  
Content Type ◽  
The Impact

Purpose This paper aims to evaluate the impact of international diversification, through the investment abroad activities of the Malaysian multinational corporations (MNCs), on their financial performance. Design/methodology/approach The paper applies the panel generalized method of moments (GMM) estimation technique that gives better results. Findings The empirical findings show that the move to invest abroad has brought a positive impact on Malaysian MNCs’ financial performance. However, in terms of a firm’s risk, the results contradict the general internationalization-risk hypothesis. Research limitations/implications The study focuses on the top 100 multinational firms; future researchers may extend the time period and use the entire sample of all the multinational firms. Practical implications Foreign investments offer rewarding returns due to cheaper labour and raw materials, competitive edge in terms of technological advancement and larger market opportunities. Originality/value The paper contributes to the literature using the panel GMM’s estimation that effectively control for reverse causality and serial correlation problem. The paper also contributes to the international diversification and performance relationship, in a fast-growing Malaysia.

The impact of executive job demands on dismissals of newly appointed CEOs

2015 ◽  
Vol 21 (6) ◽  
pp. 705-724
Author(s):  
Yu-Kai M Wang ◽  
Kun M Yang
Keyword(s):  
Information Processing ◽  
Job Demands ◽  
International Diversification ◽  
Product Diversification ◽  
Explanatory Variables ◽  
Processing Theory ◽  
Ceo Dismissal ◽  
Diversified Firms ◽  
High Degree ◽  
The Impact

AbstractWhy are some newly appointed CEOs dismissed from their positions while others are not? Is it hard for newly appointed CEOs to survive in highly diversified firms? Drawing upon the concepts of executive job demands and information-processing theory, we argue that newly appointed CEOs face entirely different degrees of complexity and challenges in their role, and that firms’ product diversification and international diversification predict dismissals of newly appointed CEOs after controlling for other possible explanatory variables. Additionally, we propose that appointment of a new outsider CEO makes newly appointed CEOs more vulnerable to dismissal and consequently strengthens the predicted relationships. The empirical results support our arguments. These results suggest that the demands faced by a high degree of (product or international) diversification are likely to present challenges that increase the likelihood of corporate disruption through the departures of newly appointed CEOs. Contributions to the CEO dismissal and succession literature are discussed.

scholarly journals The impact of international diversification on credit scores: Evidence from the UK

2021 ◽  
pp. 101856
Author(s):  
Hussein Halabi ◽  
Ahmad Alshehabi ◽  
Geoffrey Wood ◽  
Zaheer Khan ◽  
Godfred Afrifa
Keyword(s):  
International Diversification ◽  
Credit Scores ◽  
The Uk ◽  
The Impact

The impact of financial crises on international diversification

2002 ◽  
Vol 13 (2) ◽  
pp. 147-161 ◽  
Author(s):  
Robert G Schwebach ◽  
John P Olienyk ◽  
J.Kenton Zumwalt
Keyword(s):  
Financial Crises ◽  
International Diversification ◽  
The Impact

International diversification during financial crises

2018 ◽  
Vol 44 (12) ◽  
pp. 1434-1445
Author(s):  
Chu-Sheng Tai
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Financial Markets ◽  
Financial Crises ◽  
International Diversification ◽  
Subprime Crisis ◽  
Content Type ◽  
Empirical Results ◽  
The Impact ◽  
Dot Com

Purpose The purpose of this paper is to provide empirical evidence on how 1999–2001 dot-com crisis and 2007–2009 subprime crisis affect the gains from international diversification from the perspective of US investors. Design/methodology/approach A conditional international CAPM with asymmetric multivariate GARCH-M specification is used to estimate international diversification gains. Findings The authors find that over the entire sample period, the average gains from international diversification is statistically significant and about 1.253 percent per year. During the subprime crisis period, the average gains decreases to about 0.567 percent per year, but it increases to 2.829 percent per year during the dot-com crisis. Research limitations/implications These research findings although confirm the conjectures that international financial turmoil tends to increase the co-movements among global financial markets, are in contrast to the conjectures that international diversification does not work during the financial crisis as evidence from the dot-com crisis. Therefore, future research on international diversification should not just focus on the correlation among international financial markets and should adopt a fully parameterized asset pricing model to study this research topic. Practical implications Given the empirical results found in this paper that international diversification gains may be decreasing or increasing during the financial crisis, as long as investors are not able to predict international financial crises, it is the average gains from international diversification over the longer periods that should encourage investors to diversify, regardless of potentially lower benefits over the shorter periods of time. Originality/value The major value of this paper is that although the increase in the conditional correlation during the financial turmoil is consistent with previous studies, the empirical results clearly show that the impact of a financial crisis on the gains from international diversification cannot be solely determined by the correlation between domestic and world stock market returns since the gains also depend on the unsystematic risk from the domestic stock market. Consequently, it is premature for previous studies to conclude that the gain from international diversification is diminishing due to an increasing correlation among international stock markets during the financial crisis.

scholarly journals Maximizing the Benefits of Internationalization: The Moderating Role of Labour Flexibility

2016 ◽  
Vol 71 (2) ◽  
pp. 350-372 ◽  
Author(s):  
Heung-Jun Jung ◽  
Sung-Chul Noh ◽  
Sun-Wook Chung
Keyword(s):  
Financial Performance ◽  
Large Scale ◽  
Negative Impact ◽  
Emerging Market ◽  
International Diversification ◽  
Business Environment ◽  
Firm Level ◽  
The Impact ◽  
Labour Flexibility

SummaryUsing the large-scaleKorean Workplace Panel Survey, this study examines the interplay between international diversification, labour flexibility, and workplace-level performance in the context of advanced emerging markets. Filling the gap in the literature on the international diversification-performance (IDP) relationship, which focuses primarily on firm-level characteristics and overlooks the role of labour factors as contingent variables, we draw attention to the workplace level dynamics by exploring how the two types of labour flexibility—functional and numerical flexibility—moderate the impact of international diversification on performance. The results show that when workplaces invest in training for job enlargement and employee involvement programs that lead to the enhancement of functional flexibility, the link between international diversification and performance can be strengthened.This finding supports the assertion in the international HRM literature that, in the ever-globalized business environment, investment in human capital is a better strategy for improving financial performance in the long run. Furthermore, we find that numerical flexibility, as measured by in-house subcontracting arrangements, has a negative impact on the IDP relationship. Overall, our study suggests that the quality of human resources and a well-designed workplace configuration may still help improve performance in the context of international diversification, whereas excessive dependence on employment externalization for cost reduction is likely to hurt not only financial performance but also long-term sustainability. We also believe that our findings on the advanced emerging market economy complement insights from previous studies, which are largely based on Western developed economies, thus enriching current theories on labour flexibility.

scholarly journals BEHAVIORAL BIASES IN INVESTMENT DECISIONS: HOME BIAS CASE

2021 ◽  
Author(s):  
Pavlo Dziuba ◽  
Kyryl Shtogrin
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Home Bias ◽  
International Diversification ◽  
Theory And Practice ◽  
Local Bias ◽  
Advantages And Disadvantages ◽  
Developed Markets ◽  
International Portfolio ◽  
The Impact

The place of home bias in the modern paradigm of international portfolio investing is determined. The differences between theory and practice of international portfolio investing resulting from such a bias are identified. Main advantages of international diversification of investment portfolios in terms of performance-risk ratio are defined. It is determined that the growing level of financial markets globalization accompanied by the increase in correlation of returns of financial assets have not affected the benefits of international diversification. The primary problems in determining the reasons for home bias are identified. The main economic and mathematical formalization of home bias in the form of indexes is distinguished. The local bias is investigated. It is revealed that local bias is not limited to national borders. It is determined that home bias is negatively correlated with the wealth of an investor. The extent of home bias for particular groups of countries according to their level of economic development is investigated. It is determined that the highest level of home bias is observed in several developed markets, including China, Japan, the USA, and France, while Luxembourg, the Netherlands, and Switzerland have the highest level of international diversification. The benefits of international diversification based on the MSCI indexes are determined. It is revealed that the benefits from international diversification through emerging markets are higher than those of developed markets. A comparative analysis of portfolios of several countries in the instruments of foreign and local markets is carried out. It is determined that the Great Recession of 2007-2008 promoted the increase in the level of home bias but since 2013 the global level of international diversification has been increasing. Approaches to the analysis of factors of presence of home bias are determined and their main advantages and disadvantages are analyzed based on comparative analysis. The impact of asymmetry of information, financial reporting standards, non-tradable sector of the economy, volumes of investment, inflation, transaction costs, institutional factors on the level of international diversification of the investment portfolio is investigated. A new approach to systematization of factors of home bias through their clustering for institutional, behavioral, transaction and other factors is suggested.

scholarly journals The impact of domestic diversification and top management teams on the international diversification of Chinese firms

2014 ◽  
Vol 23 (2) ◽  
pp. 455-467 ◽  
Author(s):  
Jiangyong Lu ◽  
Xiaohui Liu ◽  
Igor Filatotchev ◽  
Mike Wright
Keyword(s):  
International Diversification ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Chinese Firms ◽  
The Impact
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