This paper studies the relationship between multinationality and performance under a real options lens. Based on a cross-sectional panel of multinational corporations (MNCs) that are likely to use real options reasoning for the management of their operations, we test the impact of operating and strategic options on firms’ risk-returns parameters. Our evidence reveals that both multinationality and flexibility enhance corporate performance and reduce downside risk.
|Publication status||Published - 2006|
|Event||10th Annual International Conference - New York, United States|
Duration: 14 Jun 2006 → 17 Jun 2006
|Conference||10th Annual International Conference|
|Period||14/06/06 → 17/06/06|
- Multinationality; Real Options; Downside risk; Empirics