Downside Risk Implications of Multinationality and Real Options

Tarik Driouchi, Giuliana Battisti, David Bennett

Research output: Contribution to conferencePaper

Abstract

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.
Original languageEnglish
Publication statusPublished - 2006
Event10th Annual International Conference - New York, United States
Duration: 14 Jun 200617 Jun 2006

Conference

Conference10th Annual International Conference
CountryUnited States
CityNew York
Period14/06/0617/06/06

Fingerprint

Multinationality
Downside risk
Real options
Multinational corporations
Firm risk
Risk-return
Corporate performance
Strategic options

Keywords

  • Multinationality; Real Options; Downside risk; Empirics

Cite this

Driouchi, T., Battisti, G., & Bennett, D. (2006). Downside Risk Implications of Multinationality and Real Options. Paper presented at 10th Annual International Conference, New York, United States.
Driouchi, Tarik ; Battisti, Giuliana ; Bennett, David. / Downside Risk Implications of Multinationality and Real Options. Paper presented at 10th Annual International Conference, New York, United States.
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Driouchi, T, Battisti, G & Bennett, D 2006, 'Downside Risk Implications of Multinationality and Real Options' Paper presented at 10th Annual International Conference, New York, United States, 14/06/06 - 17/06/06, .

Downside Risk Implications of Multinationality and Real Options. / Driouchi, Tarik; Battisti, Giuliana; Bennett, David.

2006. Paper presented at 10th Annual International Conference, New York, United States.

Research output: Contribution to conferencePaper

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AU - Battisti, Giuliana

AU - Bennett, David

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AB - 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.

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Driouchi T, Battisti G, Bennett D. Downside Risk Implications of Multinationality and Real Options. 2006. Paper presented at 10th Annual International Conference, New York, United States.