Business, Management and Accounting
4 years ago

Investors value multinational firms for intangible assets, not diversification.

The Journal of Business
Why Investors Value Multinationality
Randall Mørck, Bernard Yeung

Paper Summary

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Investors value multinational companies because they have intangible assets like research and development and advertising that increase their value. Multinationality itself doesn't directly impact a firm's value. This shows that investors don't necessarily invest in multinational firms to diversify their portfolios internationally.