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Do US Multinationals Differ from Non-US Multinationals in Value Creation? ACES Working Paper 2004.1, February 2004

Dastidar, Protiti. (2004) Do US Multinationals Differ from Non-US Multinationals in Value Creation? ACES Working Paper 2004.1, February 2004. [Policy Paper]

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    Abstract

    Using a sample of domestic and multinational conglomerates from four countries, this paper shows that the value impact of corporate diversification is not uniform across countries. The evidence shows that smaller countries like Germany, Japan, and the UK have a larger proportion of multinational conglomerates because multinational conglomerate diversification does not destroy value. These results contradict previous literature, which primarily focuses on US firms. In particular, though industrially diversified firms are valued at a discount in the US, they are valued at a premium in Germany and when multinational conglomerate diversification is taken into account this premium disappears. These results suggest that the value of corporate diversification is related to the size of the country and its institutional framework.

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    Item Type: Policy Paper
    Uncontrolled Keywords: Multi-national corporations; corporate diversification.
    Subjects for non-EU documents: EU policies and themes > External relations > EU-US
    Countries > U.K.
    Countries > Germany
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > American Consortium on European Union Studies > ACES Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 16 Sep 2008
    Page Range: p. 41
    Last Modified: 15 Feb 2011 17:57
    URI: http://aei.pitt.edu/id/eprint/8957

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