English, Article edition: Intangible assets and firm diversification Christopher B. Malone; Lawrence C. Rose

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/9029
Physical Description
  • article
Language
  • English

Edition details

Title
  • Intangible assets and firm diversification
Author
  • Christopher B. Malone
  • Lawrence C. Rose
Physical Description
  • article
Notes
  • Purpose – To re-examine empirically internalisation and transaction cost theories of firm FDI. Design/​methodology/​approach – Empirical analysis based on cross sectional multivariate regressions and the Fama-French three factor event study procedure. In addition to the key explanatory variables the paper introduces and models several important control variables. Findings – The paper finds evidence consistent with the internalisation and transaction cost hypotheses. Firms classified with internalisation advantages earn event period abnormal returns of 6.84 percent above firms that are classified without such advantages. In support of transaction cost theory the paper finds that FDIs generate an average abnormal event period return of -2.36 percent. Further, in line with transaction cost theory firms classified with intangible asset advantages also tend to engage in the more complex forms of foreign and industrial diversification. Research limitations/​implications – The paper does not determined if the effect linked to the possession of intangible asset advantages is temporary or permanent. FDI is costly, but firms that enjoy high market valuations tend to do well in M&​A or FDI activity. Originality/​value – The study provides new and strengthened support for internalisation theory. The study provides new evidence in support of transactions cost theory.
  • Acquisitions and mergers, Intangible assets, Internal control, International investments, Transaction costs
  • RePEc:eme:ijmfpp:v:2:y:2006:i:2:p:136-153
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment