Optimal geographic diversification and firm performance:evidence from the U.K.


This paper examines the relationship between multinationality and firm performance. The analysis is based on a sample of over 400 UK multinationals, and encompasses both service sector and manufacturing sector multinationals. This paper confirms the non-linear relationship between performance and multinationality that is reported elsewhere in the literature, but offers further analysis of this relationship. Specifically, by correcting for endogeneity in the investment decision, and for shocks in productivity across countries, the paper demonstrates that the returns to multinationality are greater than those that have been reported elsewhere, and persist to higher degrees of international diversification.

Publication DOI: https://doi.org/10.1007/s11123-008-0102-x
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School > Aston India Foundation for Applied Research
College of Business and Social Sciences > Aston Business School
Additional Information: The original publication is available at springerlink.com
Uncontrolled Keywords: multinational,performance,productivity,Business and International Management,Economics and Econometrics,Social Sciences (miscellaneous)
Publication ISSN: 1573-0441
Last Modified: 15 Jul 2024 07:04
Date Deposited: 13 Oct 2009 15:29
Full Text Link: http://www.spri ... 752l575640h545/
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2008-10
Published Online Date: 2008-08-08
Authors: Driffield, Nigel (ORCID Profile 0000-0003-1056-3117)
Du, Jun (ORCID Profile 0000-0002-0449-4437)
Girma, Sourafel



Version: Accepted Version

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