International diversification and multinational firms' risk: do locations of investments matter?
Revisiting diversification theory, this article examined the impact of investment locations on the relationship between multinational firms' diversification exercise and risk using data on foreign investment activities from 107 listed companies on the Malaysia stock exchange. The study found th...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/65316/1/19%29%20International%20Diversification%20and%20Multinational%20Firms%E2%80%99%20Risk.pdf |
| _version_ | 1825932920528830464 |
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| author | Harjito, Agus Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde Ashari, Mohamad |
| author_facet | Harjito, Agus Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde Ashari, Mohamad |
| author_sort | Harjito, Agus |
| collection | UPM |
| description | Revisiting diversification theory, this article examined the impact of investment locations on the relationship between multinational firms' diversification exercise and risk using data on foreign investment activities from 107 listed companies on the Malaysia stock exchange. The study found that diversification exercise is negatively related to risk for firms investing in non-Asian regions. On the contrary, diversification exercise is positively related to risk for firms investing in the Asian region. The results indicated that firms investing in the Asian region do not obtain benefits from diversification because of the increased risk from positively correlated economies within the Asian region. Conversely, non-Asian regions are obtaining benefit from diversification through negatively correlated economies when investing in non-Asian regions. |
| first_indexed | 2024-03-06T09:49:21Z |
| format | Article |
| id | upm.eprints-65316 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:49:21Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| record_format | dspace |
| spelling | upm.eprints-653162018-10-05T07:30:29Z http://psasir.upm.edu.my/id/eprint/65316/ International diversification and multinational firms' risk: do locations of investments matter? Harjito, Agus Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde Ashari, Mohamad Revisiting diversification theory, this article examined the impact of investment locations on the relationship between multinational firms' diversification exercise and risk using data on foreign investment activities from 107 listed companies on the Malaysia stock exchange. The study found that diversification exercise is negatively related to risk for firms investing in non-Asian regions. On the contrary, diversification exercise is positively related to risk for firms investing in the Asian region. The results indicated that firms investing in the Asian region do not obtain benefits from diversification because of the increased risk from positively correlated economies within the Asian region. Conversely, non-Asian regions are obtaining benefit from diversification through negatively correlated economies when investing in non-Asian regions. Faculty of Economics and Management, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/65316/1/19%29%20International%20Diversification%20and%20Multinational%20Firms%E2%80%99%20Risk.pdf Harjito, Agus and Amin Noordin, Bany Ariffin and Matemilola, Bolaji Tunde and Ashari, Mohamad (2018) International diversification and multinational firms' risk: do locations of investments matter? International Journal of Economics and Management, 12 (1). pp. 357-368. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12no1/19)%20International%20Diversification%20and%20Multinational%20Firms%E2%80%99%20Risk.pdf |
| spellingShingle | Harjito, Agus Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde Ashari, Mohamad International diversification and multinational firms' risk: do locations of investments matter? |
| title | International diversification and multinational firms' risk: do locations of investments matter? |
| title_full | International diversification and multinational firms' risk: do locations of investments matter? |
| title_fullStr | International diversification and multinational firms' risk: do locations of investments matter? |
| title_full_unstemmed | International diversification and multinational firms' risk: do locations of investments matter? |
| title_short | International diversification and multinational firms' risk: do locations of investments matter? |
| title_sort | international diversification and multinational firms risk do locations of investments matter |
| url | http://psasir.upm.edu.my/id/eprint/65316/1/19%29%20International%20Diversification%20and%20Multinational%20Firms%E2%80%99%20Risk.pdf |
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