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Testing the Link Between Multinationality and the Return on Foreign Assets
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Kudina, Alina, Rugman, Alan M. and Yip, George S.. (2009) Testing the Link Between Multinationality and the Return on Foreign Assets. Multinational Business Review, Vol.17 (No.3). pp. 123-142. ISSN 1525-383X
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Official URL: http://dx.doi.org/10.1108/1525383X200900020
Abstract
A large and robust empirical literature demonstrates that there is a strong relationship between the performance of a multinational enterprise (MNE) and its degree of multinationality. We develop a new metric to capture the return on foreign assets (ROFA), which we use as an alternative metric to return on total assets (ROTA) as a dependent variable representing performance. We find a significant S-shaped relation between ROFA and the degree of multinationality across a large set of UK firms.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| Divisions: | Faculty of Social Sciences > Warwick Business School > Marketing & Strategic Management Faculty of Social Sciences > Warwick Business School |
| Journal or Publication Title: | Multinational Business Review |
| Publisher: | Emerald Group Publishing Ltd. |
| ISSN: | 1525-383X |
| Date: | 2009 |
| Volume: | Vol.17 |
| Number: | No.3 |
| Number of Pages: | 20 |
| Page Range: | pp. 123-142 |
| Identification Number: | 10.1108/1525383X200900020 |
| Status: | Peer Reviewed |
| Publication Status: | Published |
| Access rights to Published version: | Restricted or Subscription Access |
| URI: | http://wrap.warwick.ac.uk/id/eprint/43825 |
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