Articles liés à Does Multinationality Matter? Evidence of Value Destruction...

Does Multinationality Matter? Evidence of Value Destruction in U.S. Multinational Corporations - Couverture souple

Department Of International Business

 
9781502489388: Does Multinationality Matter? Evidence of Value Destruction in U.S. Multinational Corporations
Couverture souple
ISBN 10 : 1502489384 ISBN 13 : 9781502489388
Editeur : CreateSpace Independent Publishing Platform, 2014

Synopsis

We document that capital markets penalize corporate multinationality by putting a lower value on the equity of multinational corporations than on otherwise similar domestic corporations. Using Tobin’s q, the multinational discount is estimated to be in the range of 8.6% to 17.1%. The most important mechanism of value destruction is an asset channel in which multinationals have disproportionately high levels of assets in relation to the earnings they generate. Foreign assets are particularly associated with value destruction. In contrast, exporting from U.S. operations is associated with an export premium -- of approximately 3.9% -- resulting from both a higher market value and lower asset size. Given these findings, we ask why firms become multinationals. Evidence reveals that the portion of a firm owned by management is inversely related to the likelihood that the firm is a multinational, so we conclude that managers who do not own much of the firm may be building multinational empires for private gains at the expense of the shareholders.

Les informations fournies dans la section « Synopsis » peuvent faire référence à une autre édition de ce titre.

Présentation de l'éditeur

We document that capital markets penalize corporate multinationality by putting a lower value on the equity of multinational corporations than on otherwise similar domestic corporations. Using Tobin’s q, the multinational discount is estimated to be in the range of 8.6% to 17.1%. The most important mechanism of value destruction is an asset channel in which multinationals have disproportionately high levels of assets in relation to the earnings they generate. Foreign assets are particularly associated with value destruction. In contrast, exporting from U.S. operations is associated with an export premium -- of approximately 3.9% -- resulting from both a higher market value and lower asset size. Given these findings, we ask why firms become multinationals. Evidence reveals that the portion of a firm owned by management is inversely related to the likelihood that the firm is a multinational, so we conclude that managers who do not own much of the firm may be building multinational empires for private gains at the expense of the shareholders.

Les informations fournies dans la section « A propos du livre » peuvent faire référence à une autre édition de ce titre.

Éditeur
CreateSpace Independent Publishing Platform
Date d'édition
2014
Langue
anglais
ISBN 10 
1502489384
ISBN 13 
9781502489388
Reliure
Broché
Nombre de pages
36
Coordonnées du fabricant
non disponible
Personne responsable
non disponible