International diversification strategies: Revisited from the risk perspective

Bai, Ye; Green, Christopher J.

doi:10.1016/j.jbankfin.2009.07.026

Cited by 63 publications

(32 citation statements)

References 26 publications

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“…Investors seek diversification in their portfolios to reduce the risk of suffering heavy losses. International diversification is made possible by the less than perfect integration of international stock markets (Bai and Green, 2010;Chandar et al, 2009;Francis et al, 2008). However, in times of financial crisis, contagion effects may cause markets to co-move strongly, even where macroeconomic fundamentals would not suggest strong interdependence (Dornbusch et al, 2000;Hasman and Samartin, 2008).…”

Section: Motivation and Literaturementioning

confidence: 99%

Is gold a safe haven? International evidence

Baur¹,

McDermott

2010

Journal of Banking & Finance

1,408

627

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Section: Motivation and Literaturementioning

confidence: 99%

Is gold a safe haven? International evidence

Baur¹,

McDermott

2010

Journal of Banking & Finance

1,408

627

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“…Studies in financial economics using stock market returns as an indicator of firm performance try to explain the strong impact of industry on performance in emerging economies. One important aspect is the high share of non-operating income in some industries, especially in times of economic volatility (Bai and Green, 2010;Cavaglia, Brightman and Aked, 2000;Phylaktis and Xia, 2006). As Kearney (2012: 162) points out, "greater uncertainty and risk" is a common feature of emerging economies.…”

Section: Comparison Of the Impact Of Strategy And Structure On Firm Pmentioning

confidence: 99%

Antecedents of firm performance in emerging economies: Business groups, strategy, industry structure, and state support

Karabag

Berggren

2014

Journal of Business Research

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A rich literature has investigated the antecedents of firm performance in developed economies, resulting in a consensus view that firm resources and strategy are the key determinants. Several arguments, however, suggest that in emerging economies other factors are more important for firm performance. This study analyzes the impact of firm strategy and industry structure as well as business group membership and state support on firm performance in an advanced emerging economy, Turkey. Using a data set compiled from a selection of the 1,000 largest manufacturing firms in this country, the study employs several regression models to identify the main determinants of firm performance as measured by productivity and net profit margin. In contrast to studies of developed economies, the investigation finds that firm-related factors (competitive strategies) do not significantly influence performance; instead factors related to industry structure and business group membership are the strongest determinants of firm performance; further, state support interacts with business group membership and is positively related to productivity.

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“…While a dearth of study (Griffin and Karolyi 1998;Bai and Green 2010) has shown that country effect continues to dominate industry effect, a consensus has emerged that industry effect has grown in importance relative to country effect since the late 1990s in developed markets (Baca et al 2000, Cavaglia et al 2000, Phylaktis and Xia, 2006) with similar evidence found in emerging Asian markets (Wang et al, 2003). The rising importance of industry effect in explaining equity markets comovements has been, in part, attributed to globalisation of the world economy and financial markets integration (Campa and Fernandes, 2006), and the dominant role played by information technology in the 1990s (Brooks and Del Negro 2006).…”

Section: Introductionmentioning

confidence: 99%

Factor reversal in the euro zone stock returns: Evidence from the crisis period

Chou

Zhao

Suardi

2014

Journal of International Financial Markets, Institutions and Mo

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The introduction of the common currency in the Euro zone has led to a shift in factor importance from country to industry effects. Nevertheless, there is overwhelming evidence that the recent spate of crises has engendered a reversal in factor importance, returning it to country effect. This factor reversal is caused by deteriorating macroeconomic fundamentals and institutional factor, and rising sovereign risks which were identified to play important roles in characterising country factor returns of the Euro zone member countries during the crisis. Moreover, fund managers who invested in Euro zone stocks during the crisis could have gained diversification benefits from the more traditional country portfolio approach.

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International diversification strategies: Revisited from the risk perspective

Cited by 63 publications

References 26 publications

Is gold a safe haven? International evidence

Is gold a safe haven? International evidence

Antecedents of firm performance in emerging economies: Business groups, strategy, industry structure, and state support

Factor reversal in the euro zone stock returns: Evidence from the crisis period

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