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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF ACCOUNTING AND FINANCE

Why Shareholders and Debt-Holders Value Internationally Diversified Firms:
Evidence from the United States


Author(s): Kingsley O. Olibe, Robert H. Strawser, William R. Strawser

Citation: Kingsley O. Olibe, Robert H. Strawser, William R. Strawser, (2011) "Why Shareholders and Debt-Holders Value Internationally Diversified Firms: Evidence from the United States" Vol. 11, Iss. 2, pp. 26 - 52

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper empirically tests whether international diversification is associated with market value and debt. Specifically, we relate the levels of equity and debt to firms’ foreign assets and foreign sales. We find that market value is positively related to international diversification, indicating significant gains to share-holders of these firms. Alternatively, the level of debt is positively (negatively) associated with the level of foreign assets (foreign sales. We also consider whether debt levels alter the valuation of foreign assets and foreign sales, finding that the association between market value and foreign assets is stronger for highly-leveraged firms.