Authors
Chuck CY Kwok, David M Reeb
Publication date
2000/12/1
Journal
Journal of international business studies
Volume
31
Pages
611-629
Publisher
Palgrave Macmillan UK
Description
Corporate international diversification theory posits that multinational corporations (MNCs) should have lower risk and higher financial leverage than purely domestic corporations (DCs). We suggest an alternative upstream-downstream hypothesis according to which the overall effect of internationalization on the risk and leverage of MNCs is expected to vary with home and target market conditions. The empirical results are consistent with the suggested hypothesis.
Total citations
Scholar articles
CCY Kwok, DM Reeb - Journal of international business studies, 2000