Cultural distance and valuation of multinational corporations Export

@article{citeulike:1884631, abstract = {We examine the value impact of cultural differences that exist between the foreign subsidiaries and the headquarters of U.S. Multinational corporations (MNCs). We find a negative relationship between cultural distance and firm valuation. Specifically, in addition to the cultural distance index, which is a composite measure of cultural differences, most of the individual cultural attributes that make up the index have a negative effect on firm valuation. Our findings are consistent with the notion that cultural differences decrease firm value by imposing a barrier to the exploitation of internalization advantages. Our results remain robust when we use orthogonal cultural distance measures and various multivariate methodologies.}, author = {Antia, Murad and Lin, Barry J. and Pantzalis, Christos}, citeulike-article-id = {1884631}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/j.mulfin.2006.10.002}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6VGV-4MFJTD2-1/2/ae0e5b068d617c59c501567d4b1e4832}, doi = {10.1016/j.mulfin.2006.10.002}, journal = {Journal of Multinational Financial Management}, keywords = {behaviour, firm, fm}, month = {December}, number = {5}, pages = {365--383}, posted-at = {2007-11-08 12:31:17}, priority = {2}, title = {Cultural distance and valuation of multinational corporations}, url = {http://dx.doi.org/10.1016/j.mulfin.2006.10.002}, volume = {17}, year = {2007} }

TY - JOUR ID - citeulike:1884631 L3 - citeulike-article-id:1884631 N2 - We examine the value impact of cultural differences that exist between the foreign subsidiaries and the headquarters of U.S. Multinational corporations (MNCs). We find a negative relationship between cultural distance and firm valuation. Specifically, in addition to the cultural distance index, which is a composite measure of cultural differences, most of the individual cultural attributes that make up the index have a negative effect on firm valuation. Our findings are consistent with the notion that cultural differences decrease firm value by imposing a barrier to the exploitation of internalization advantages. Our results remain robust when we use orthogonal cultural distance measures and various multivariate methodologies. IS - 5 JF - Journal of Multinational Financial Management EP - 383 TI - Cultural distance and valuation of multinational corporations VL - 17 SP - 365 KW - behaviour KW - firm KW - fm AU - Antia, Murad AU - Lin, Barry AU - Pantzalis, Christos PY - 2007/12// UR - http://dx.doi.org/10.1016/j.mulfin.2006.10.002 ER -