Work

Value and Cost of Multinationality: International Diversification and Real Options Effects

Year: 2014

Type: article

Abstract: In this research, we examine the moderating impacts of external uncertainty and portfolio ownership on the values and costs of multinationality by comparing international diversification and real options effects. We find from Korean FDI data that uncertainty strengthens the negative value of breadth in low level of multinationality, while ownership weakens. Meanwhile, in high level of multinationality, uncertainty strengthens the positive value of multinationality while ownership weakens. While the first results support international diversification perspective, the second results support real options view.

Source: RePEc: Research Papers in Economics

Author: Sangcheol Song

Institution: Saint Joseph's University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W13132497

FWCI:

Cites: 23

Cited by: 2

Related to: 10