Multinational companies' real asset ownership and its impact on diversification
Language: English Series: Journal of Corporate Real Estate ; 7(4), 2005, 326-338(13)Publication details: 2005Subject(s): Summary: Examines whether or not holding a greater percentage of real assets significantly impacts the risk and risk-adjusted return of US based multinational companies in order to provide a better understanding of the impact of risk, return and diversification. A series of rolling two stage least square regression models analysed the relationships among corporate real assets, systematic risk (beta), and risk adjusted return. It was found that U.S. based multinational companies do have lower betas. However, their cross border real asset holdings do not affect diversification and do not provide significantly higher risk-adjusted returns to stockholders.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | L132699 (Browse shelf(Opens below)) | 1 | Available | 132699-1001 |
Examines whether or not holding a greater percentage of real assets significantly impacts the risk and risk-adjusted return of US based multinational companies in order to provide a better understanding of the impact of risk, return and diversification. A series of rolling two stage least square regression models analysed the relationships among corporate real assets, systematic risk (beta), and risk adjusted return. It was found that U.S. based multinational companies do have lower betas. However, their cross border real asset holdings do not affect diversification and do not provide significantly higher risk-adjusted returns to stockholders.