We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Optimal geographic diversification and firm performance: evidence from the U.K.
- Authors
Driffield, Nigel; Du, Jun; Girma, Sourafel
- Abstract
This paper examines the relationship between multinationality and firm performance. The analysis is based on a sample of over 400 UK multinationals, and encompasses both service sector and manufacturing sector multinationals. This paper confirms the non-linear relationship between performance and multinationality that is reported elsewhere in the literature, but offers further analysis of this relationship. Specifically, by correcting for endogeneity in the investment decision, and for shocks in productivity across countries, the paper demonstrates that the returns to multinationality are greater than those that have been reported elsewhere, and persist to higher degrees of international diversification.
- Subjects
ECONOMETRICS; INTERNATIONAL competition; INVESTMENT analysis; INVESTMENTS; DIVERSIFICATION in industry; BUSINESS planning; FINANCE; ECONOMICS; MANUFACTURED products
- Publication
Journal of Productivity Analysis, 2008, Vol 30, Issue 2, p145
- ISSN
0895-562X
- Publication type
Article
- DOI
10.1007/s11123-008-0102-x