Internationalization, foreign exchange exposure and firm risk

Napaporn Likitwongkajon and Chaiporn Vithessonthi ()

International Review of Financial Analysis, 2022, vol. 83, issue C

Abstract: This paper examines the effect of internationalization on variation in operating performance. Analyzing a sample of non-financial firms in Switzerland during 2000–2020, we document two key findings. First, internationalization is positively associated with variation in operating performance. However, neither operational-hedging internationalization nor revenue-seeking internationalization moderates the relation between internationalization and variation in operating performance. Second, our findings show that the unhedged foreign exchange exposure neither strengthens nor weakens the effect of internationalization on variation in operating performance. Further analyses show that internationalization is not associated with firm performance.

Keywords: Foreign exchange exposure; Foreign investments; Firm risk; Performance volatility; Switzerland (search for similar items in EconPapers)
JEL-codes: F21 F23 G31 G32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:83:y:2022:i:c:s105752192200285x

DOI: 10.1016/j.irfa.2022.102334

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