Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-25T22:37:24.007Z Has data issue: false hasContentIssue false
  • English
  • Français

Discussion: Corporate International Diversification and Market Assigned Measures of Risk and Diversification

Published online by Cambridge University Press:  19 October 2009

Alan M. Rugman
Get access Rights & Permissions [Opens in a new window]

Extract

This paper by Hughes, Logue, and Sweeney offers an excellent summary of recent theoretical work on the advantages of multinational firms in providing opportunities for international diversification. In addition, some interesting empirical tests of an international version of the capital asset pricing model (IAPM) are reported. Neither of these topics is original as several writers have explored the theoretical advantages of the multinational firm providing international diversification, including this discussant [1]. The IAPM has been tested by Solnik [2] and others who find that systematic risk is lower in international financial markets than in domestic ones.

Type
VI. Capital Budgeting Decsions
Information
Journal of Financial and Quantitative Analysis , Volume 10 , Issue 4 , November 1975 , pp. 651 - 652
Copyright
Copyright © School of Business Administration, University of Washington 1975

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Rugman, Alan M. “Foreign Operations and the Stability of U.S. Corporate Earnings: Risk Reduction by International Diversification.” Ph.D. Thesis, Simon Fraser University (1974).CrossRefGoogle Scholar
[2]Solnik, Bruno H.European Capital Markets (Lexington, Mass: Heath, 1973).Google Scholar