The Valuation of MNC International Operations During the 1990s

The Valuation of MNC International Operations During the 1990s We investigate how international operations affected firm value during the early 1990s. We also investigate whether the disclosures of foreign operations in specific geographic regions under SFAS No. 14 provide investors with useful information beyond disclosure of aggregate foreign operations. We find that in the early 1990s, investors do not value international operations as highly as domestic operations, and that geographic region disclosures are not useful for conveying information about the specific location and magnitude of the firm's operations. This latter finding supports the recent FASB decision that eliminated the requirement that firms break out foreign operating statistics by geographic region. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Quantitative Finance and Accounting Springer Journals

The Valuation of MNC International Operations During the 1990s

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2002 by Kluwer Academic Publishers
Subject
Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
ISSN
0924-865X
eISSN
1573-7179
D.O.I.
10.1023/A:1014513001321
Publisher site
See Article on Publisher Site

Abstract

We investigate how international operations affected firm value during the early 1990s. We also investigate whether the disclosures of foreign operations in specific geographic regions under SFAS No. 14 provide investors with useful information beyond disclosure of aggregate foreign operations. We find that in the early 1990s, investors do not value international operations as highly as domestic operations, and that geographic region disclosures are not useful for conveying information about the specific location and magnitude of the firm's operations. This latter finding supports the recent FASB decision that eliminated the requirement that firms break out foreign operating statistics by geographic region.

Journal

Review of Quantitative Finance and AccountingSpringer Journals

Published: Oct 13, 2004

References

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