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Hysteresis and the Value of the U.S. Multinational Corporation*
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Abstract(back to top)
This article examines the value of international operations to the U.S. multinational corporation during a period of exchange rate volatility and uncertainty. Rather than enhancing firm value, international operations during the 1980s are found to be associated with decreased firm value, with the greatest decreases occurring when the dollar was strongest. This evidence is consistent with recent models that predict a connection between sunk costs and hysteretic pricing behavior in foreign markets.
Bibliographic Information(back to top)
- Hysteresis and the Value of the U.S. Multinational Corporation
- Stephen E. Christophe
- The Journal of Business
- Vol. 70, No. 3 (July 1997) (pp. 435-462)
Notes and References(back to top)
This item contains 1 note(s).
Notes
* The author would like to thank Bob Connolly, Ted Day, Dan Golden, Richard McEnally, Richard Morrison, John Pringle, and participants at the Summer 1994 CRSP Seminar for providing helpful comments and discussions during various stages of this article's development. Financial support from CIBER at Michigan State University, United Carolina Bank, and the Cameron School of Business Summer Grant Program is gratefully acknowledged.
Items Citing this Item (back to top)
5 item(s) in JSTOR cite this item
- B. Elango, Yu-Luen Ma, Nat PopeVol. 75, No. 3 (Sep., 2008) pp. 567-591Stable URL: http://www.jstor.org/stable/25145296
- Heather BerryVol. 27, No. 12 (Dec., 2006) pp. 1123-1140Stable URL: http://www.jstor.org/stable/20142404
- John A. Doukas, Ozgur B. KanVol. 37, No. 3 (May, 2006) pp. 352-371Stable URL: http://www.jstor.org/stable/3875264
- Stephen E. ChristopheVol. 75, No. 1 (January 2002) pp. 67-93Stable URL: http://www.jstor.org/stable/10.1086/323505
- Christos PantzalisVol. 32, No. 1 (1st Qtr., 2001) pp. 133-155Stable URL: http://www.jstor.org/stable/3069514