Firm-level internationalisation and the home bias puzzle
Citation:
Jenny Berrill, Colm Kearney, Firm-level internationalisation and the home bias puzzle, Journal of Economics and Business, 62, 4, 2010, 235-256Download Item:
Abstract:
The extent to which internationalising MNEs create value, and the extent to which
investors can reap the benefits of firm-level internationalisation remain controversial
issues. Using a multi-country dataset with over 3 million observations, we classify 1,143
firms listed on the exchanges of the G7 countries according to the geographical spread of
their sales and subsidiaries. We show that more internationalised firms provide greater
diversification benefits. By investing in home-based internationalised firms, investors can
`free ride? the costs and risks associated with internationalisation at the level of the firm
and exhibit home bias while availing of international diversification benefits.
Author's Homepage:
http://people.tcd.ie/kearnechttp://people.tcd.ie/jberril
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PUBLISHED
Author: KEARNEY, COLM; BERRILL, JENNY
Publisher:
ElsevierType of material:
Journal ArticleSeries/Report no:
Journal of Economics and Business;62;
4;
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