International Diversification and Firm Performance: The S-Curve Hypothesis.

Lu, Jane; Beamish, Paul W.

doi:10.2307/20159604

Cited by 950 publications

(941 citation statements)

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“…Riskiness is commonly used as a control in research on Tobin's q (Lu and Beamish, 2004). The value of this variable is the ratio of the firm's debt to shareholders' equity.…”

Section: Datamentioning

confidence: 99%

Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach

Misani

Pogutz

2015

Ecological Economics

137

151

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We examine the roles of the outcome and process dimensions of environmental performance in determining financial performance as measured by Tobin's q. Outcomes refer to the impacts of the firm on the natural environment, while processes are the firm's actions to reduce these outcomes. We focus on a specific outcome-carbon emissions-and suggest that it affects Tobin's q non-linearly. We find that firms achieve the highest financial performance when their carbon performance is neither low nor high, but intermediate. We also find that environmental processes moderate this relationship as they reinforce firms' financial performance through improved stakeholder management. This mixed picture suggests that firms do not generally internalize the costs of poor carbon performance, but those that stand out in both environmental outcomes and processes achieve net financial benefits. These findings are based on a sample of carbon-intensive firms that disclosed their greenhouse gas (GHG) emissions through the Carbon Disclosure Project from 2007 through 2013.

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“…Riskiness is commonly used as a control in research on Tobin's q (Lu and Beamish, 2004). The value of this variable is the ratio of the firm's debt to shareholders' equity.…”

Section: Datamentioning

confidence: 99%

Unraveling the effects of environmental outcomes and processes on financial performance: A non-linear approach

Misani

Pogutz

2015

Ecological Economics

137

151

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“…The determinants of the geographic scope of the firm have attracted significant attention (Cardinal, Miller, & Palich, 2011;Contractor, Kundu, & Hsu, 2003;Goerzen & Beamish, 2003;Hennart, 2011;Lu & Beamish, 2004;Qian, Khoury, Peng, & Qian, 2010;Rugman, 2005). But how cross-listing impacts the geographic scope of the firm has remained underexplored.…”

Section: Cross-listing and The Geographic Scope Of The Firmmentioning

confidence: 99%

Cross-listing and the scope of the firm

Peng¹,

Su²

2014

Journal of World Business

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Abstract"What determines the scope of the firm?" is one of the most fundamental questions in strategic management and international business. Yet no previous research has investigated the relationship between the scope of the firm and cross-listing-a firm listing its stock on overseas exchanges. We leverage the resource-based and institution-based views with a focus on cross-listed firms from emerging economies. We predict that cross-listing may result in a narrower product scope in the short run, a wider product scope in the long run, an expanded geographic scope overall, and a higher propensity to engage in mergers and acquisitions in the host country.

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“…Contractor et al (2003), for example, argue that firms with low international diversity exhibit low performance because of the initial learning costs of operating abroad, while those with very high levels of international diversity also exhibit low performance because they have "over-internationalized." While this is an interesting hypothesis, it is one that should be tested longitudinally over longer periods than the five years used in Contractor et al's pooled cross section-times series or the ten years used in Lu and Beamish (2004). Indeed, a study of how firms expand overseas over long periods, and whether there are clear stages such as a learning stage and an over-expansion stage, would be of great interest.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%