Multinationality, profitability and firm value
Abstract
Presents a study of the importance of multinationality in predicting firm valuation and profitability using Ohlson’s (1988, 1991) valuation model as a basis for model development. Tests these models on 1987‐1992 US data and compares them with predictions based on current return on equity. Presents the results, which suggest that the degree of internationalization helps to explain cross‐sectional differences in market value, but does not provide much extra information on future profitability.
Keywords
Citation
AlNajjar, F.K. and Riahi‐Belkaoui, A. (1999), "Multinationality, profitability and firm value", Managerial Finance, Vol. 25 No. 12, pp. 31-41. https://doi.org/10.1108/03074359910766325
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited