Managerial Incentives, Internalization, and Market Valuation of Multinational Firms

Chandra S Mishra and David H Gobeli
Additional contact information
Chandra S Mishra: Oregon State University
David H Gobeli: Oregon State University

Journal of International Business Studies, 1998, vol. 29, issue 3, 583-597

Abstract: This paper examines the role of firm technology investment, in concert with managerial incentives alignment, to explain the relative market value compared to the accounting value for a multinational firm. The results are consistent with internalization theory in that greater multinationality corresponds to a higher valuation of the firm if technology investment is high, and the impact is even greater if managerial incentives alignment is high as well. However, greater multinationality alone does not correlate to a significantly greater value, which differs from the tenets of imperfect capital markets theory.© 1998 JIBS. Journal of International Business Studies (1998) 29, 583–597

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v29/n3/pdf/8490008a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v29/n3/full/8490008a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:29:y:1998:i:3:p:583-597

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 () and Springer Nature Abstracting and Indexing ().