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- Publisher
- Wiley
- Copyright
- Copyright © 1990 Wiley Subscription Services, Inc., A Wiley Company
- ISSN
- 0954-1314
- eISSN
- 1467-646X
- DOI
- 10.1111/j.1467-646X.1990.tb00086.x
- Publisher site
- See Article on Publisher Site
Abstract
On average, announcements of international licensing agreements are followed by reductions in US firms' betas only for licensing agreements announced after 1980 and only for licences that transfer technology. These findings are inconsistent with an unambiguous benefit from indirect international diversification through firms. When risk does change, the change relates positively to announcement period abnormal returns for multinational corporations but not for firms going abroad for the first time. The absence of a significant relation between abnormal returns and the change in risk for first‐time entrants into international markets may be caused by small sample sizes, by extraproject information conveyed by licensing announcements made by these firms, or by potential estimation risk.
Journal
Journal of International Financial Management & Accounting – Wiley
Published: Jun 1, 1990