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Book/Printed Material The comovement of returns and investment within the multinational firm

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Title

  • The comovement of returns and investment within the multinational firm

Summary

  • "Can financial integration, particularly the cross-border investments of multinational firms, help explain the synchronization of business cycles? This paper presents evidence on the comovement of returns and investment within U.S. multinational firms to address this question. These firms constitute significant fractions of economic output and investment in most large economies, suggesting that they could create significant economic linkages. Aggregate measures of rates of return and investment rates of U.S. multinational firms located in different countries are highly correlated across countries. Firm-level regressions demonstrate that rates of return and investment rates of affiliates are highly correlated with the rates of return and investment of the affiliate's parent and other affiliates within the same parent system, controlling for country and industry factors. The evidence on these interrelationships and the importance of multinationals to local economies suggests that global firms may be an important channel for transmitting economic shocks. This evidence also sheds light on asset pricing puzzles related to the diversification benefits provided by multinational firms"--National Bureau of Economic Research web site.

Names

  • Desai, Mihir A. (Mihir Arvind), 1968-
  • Foley, C. Fritz
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

  • -  Business cycles--United States
  • -  International business enterprises--United States
  • -  Rate of return--United States

Notes

  • -  Title from PDF file as viewed on 1/12/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005615582

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Desai, Mihir A, C. Fritz Foley, and National Bureau Of Economic Research. The Comovement of Returns and Investment Within the Multinational Firm. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://aj.sunback.homes/item/2005615582/.

APA citation style:

Desai, M. A., Foley, C. F. & National Bureau Of Economic Research. (2004) The Comovement of Returns and Investment Within the Multinational Firm. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005615582/.

MLA citation style:

Desai, Mihir A, C. Fritz Foley, and National Bureau Of Economic Research. The Comovement of Returns and Investment Within the Multinational Firm. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005615582/>.