Excess Market Value, the Multinational Corporation, and Tobin's q-Ratio
Wi Saeng Kim and
Esmeralda O Lyn
Additional contact information
Wi Saeng Kim: Baruch College—CUNY
Esmeralda O Lyn: Hofstra University
Journal of International Business Studies, 1986, vol. 17, issue 1, 119-125
The results of this study show that there is a positive and significant relationship between excess market value of multinational corporations and the degree of international involvement as measured by foreign sales percentage. However, the excess market value is not determined by the number of foreign subsidiaries, nor the interaction between foreign sales and the number of foreign subsidiaries. The relationship between excess market value and the two frequently used measures of monopoly power–concentration ratio and the Learner Index–was also examined. This study found that the Learner Index contributes significantly in explaining excess market value but concentration ratio does not. Furthermore, the positive and significant coefficients of advertising and R & D intensity serve as evidence that product market imperfections appear to play a bigger role in explaining the excess market value experienced by MNCs during our sample period.© 1986 JIBS. Journal of International Business Studies (1986) 17, 119–125
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v17/n1/pdf/8490420a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v17/n1/full/8490420a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:17:y:1986:i:1:p:119-125
Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2
Access Statistics for this article
Journal of International Business Studies is currently edited by John Cantwell
More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla ().