Abstract

http://ssrn.com/abstract=1933777
 
 

References (42)



 


 



The Multinational Advantage


Drew D. Creal


University of Chicago - Booth School of Business - Econometrics and Statistics

Leslie A. Robinson


Dartmouth College - Tuck School of Business

Jonathan L. Rogers


University of Chicago - Booth School of Business

Sarah L. C. Zechman


University of Chicago - Booth School of Business

May 1, 2014

Chicago Booth Research Paper No. 11-37
Fama-Miller Working Paper

Abstract:     
Using a proprietary dataset, we investigate whether the degree of international diversification affects firm value for U.S. multinational corporations (MNCs). Our analyses offer robust evidence that organizing a set of otherwise independent activities within a multinational network results in a value premium, relative to a benchmark portfolio of independent firms operating in the same country-industry footprint as the MNC. We also examine frictions and economic forces that plausibly give rise to this value premium and find forces related to equity market segmentation, exposure to various legal environments, and cost containment strategies affect the advantage of MNCs, relative to local competitors.

Number of Pages in PDF File: 57

Keywords: firm valuation, multinational corporations, diversification

JEL Classification: F23, G32, G34, M41

working papers series


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Date posted: September 28, 2011 ; Last revised: May 31, 2014

Suggested Citation

Creal, Drew D. and Robinson, Leslie A. and Rogers, Jonathan L. and Zechman, Sarah L. C., The Multinational Advantage (May 1, 2014). Chicago Booth Research Paper No. 11-37; Fama-Miller Working Paper. Available at SSRN: http://ssrn.com/abstract=1933777 or http://dx.doi.org/10.2139/ssrn.1933777

Contact Information

Drew D. Creal
University of Chicago - Booth School of Business - Econometrics and Statistics ( email )
Chicago, IL 60637
United States
Leslie Robinson
Dartmouth College - Tuck School of Business ( email )
Hanover, NH 03755
United States
603-646-4018 (Phone)
Jonathan L. Rogers
University of Chicago - Booth School of Business ( email )
5807 S Woodlawn
Chicago, IL 60637-1561
United States
773-834-0161 (Phone)
Sarah L. C. Zechman (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
(773)702-7136 (Phone)
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