Investor Recognition of Corporate International Diversification

Agmon, Tamir; Lessard, Donald R.

doi:10.1111/j.1540-6261.1977.tb03308.x

Cited by 286 publications

(107 citation statements)

References 12 publications

Supporting

Mentioning

101

Contrasting

Unclassified

Order By: Relevance

“…Recent investigations have had more of an international flavor. Several have examined the effects of alternative treatments of foreign currency gains and losses on management hedging practices (Evans, Folks and Jillings, 1978;Shank, Dillard andMurdock, 1979, Arnold andHolder, 1987;and Houston, 1990). Biddle and Saudagaran (1989) show that differences in a stock exchange's financial disclosure requirements affect management listing choices.…”

Section: Motivation and Research Questionsmentioning

confidence: 99%

Merger Premia and National Differences in Accounting for Goodwill

Choi

Lee

1991

Financ Manag Account

View full text Add to dashboard Cite

We examine the effects of international accounting diversity on the market for corporate control with particular reference to whether national differences in the treatment of purchased goodwill are associated with differences in premia offered by U.K. as opposed to U.S. acquirers of U.S. targets.We find merger premia associated with U.K. acquisitions to be consistently higher than those for U.S. acquisitions. Moreover, higher premiums offered by U.K. acquirors appear to be associated with not having to amortize goodwill to earnings. The evidence provided here suggests that national differences in accounting impact differentially on managerial behavior.

show abstract

Section: Motivation and Research Questionsmentioning

confidence: 99%

Merger Premia and National Differences in Accounting for Goodwill

Choi

Lee

1991

Financ Manag Account

View full text Add to dashboard Cite

show abstract

“…ternational markets reduces the risk of bankruptcy and increases revenues and that higher levels of multinationality lead to higher accrued value to a firm, empirical research in this area has provided a "mixed bag" of results which range from positive (Agmon & Lessard, 1977;Hirschey, 1981;Errunza & Senbet, 1984;and Michel & Shaked, 1986 among others), to weak (Morck & Yeung, 1991;Jung, 1991) to negative (Kohers, 1975;Siddharthan & Lall, 1982;Shaked, 1986), and to even an inverted 'U' (Qian, 2002;Daniels & Bracker, 1989;and Geringer, Beamish & daCosta, 1989) relationship between multinationality and firm performance. Interestingly, Contractor, Kundu and Hsu (2003) even offer a three stage theory of the multinational firm reflected in an "S" shaped curve which they argue better explains its performance.…”

Section: Journal Of Transnational Managementmentioning

confidence: 99%

Corporate Performance Implications of Multinationality

Annavarjula

Beldona

Sadrieh

2006

Journal of Transnational Management

View full text Add to dashboard Cite

The emergence and evolution of the multinational corporation is widely viewed as one of the most remarkable economic developments of the post-war business environment. The relationship between multinationality and firm performance has been the subject of numerous empirical investigations. Results of these studies have often been contradictory, with some researchers finding a positive relationship and others a negative relationship between multinationality and firm performance.Our study highlights the importance of firm-specific moderators in understanding the main effect of the relationship between multinationality and performance. It utilizes a multi-item measure of multinationality and examines its relationship with performance in the context of firm specific moderators. Results indicate that the relationship between multinationality and performance is significantly and positively moderated by market power but not by firm-specific knowledge and product diversity.

show abstract

“…This diversification service hypothesis has been cited as one economic motive' for foreign direct investment (Adler, 1974;Alder and Dumas, 1975;Hughes, Logue and Sweeney, 1975;Subramanyam, 1975;Lee and Sachedeva, 1977;Agmon and Lessard, 1977;Mikhail and Shawky, 1979;Aggarwal, 1980;and Errunza and Senbet, 1981). This diversification service hypothesis has been cited as one economic motive' for foreign direct investment (Adler, 1974;Alder and Dumas, 1975;Hughes, Logue and Sweeney, 1975;Subramanyam, 1975;Lee and Sachedeva, 1977;Agmon and Lessard, 1977;Mikhail and Shawky, 1979;Aggarwal, 1980;and Errunza and Senbet, 1981).…”

Section: Introductionmentioning

confidence: 98%

“…Agmon and Lessard (1977) employ a two-factor international market model with the New York Stock Exchange (NYSE) index and an international index which is designed to be orthogonal to the NYSE index. Previous findings regarding this hypothesis are controversial.…”

Section: Introductionmentioning

confidence: 99%

Stock Market Recognition of Multinationality of a Firm and International Events

Yang

Wansley

Lane

1985

Business Fin & Account

View full text Add to dashboard Cite

This paper presents the results of empirical tests on a necessary condition for the diversification service hypothesis: market recognition of the multinationality of a firm and the existence of international factors. Employing both a two‐ factor international market model and residual analyses, this study examines whether the US stock market considers the multinationality of a firm and inter‐ national events which are expected to affect the price of MNCs' stock. The residual analysis is conducted over a period which includes both fixed and floating exchange rates. Results from both analyses support the hypothesis that the US stock market does recognize the multinationality of a firm.

show abstract

Investor Recognition of Corporate International Diversification

Cited by 286 publications

References 12 publications

Merger Premia and National Differences in Accounting for Goodwill

Merger Premia and National Differences in Accounting for Goodwill

Corporate Performance Implications of Multinationality

Stock Market Recognition of Multinationality of a Firm and International Events

Contact Info

Product

Resources

About