SOURAFEL GIRMA SOURAFEL.GIRMA@NOTTINGHAM.AC.UK
Professor of Industrial Economics
Global engagement and returns volatility
Girma, Sourafel; Lancheros, Sandra; Ria�o, Alejandro
Authors
Sandra Lancheros
Alejandro Ria�o
Abstract
This paper finds that a greater reliance on foreign market sales increases the volatility of firms’ stock returns using high-frequency data for publicly-listed Japanese manufacturing firms over the period 2000 to 2010. The two margins of global engagement we consider, namely, exports and sales via foreign affiliates (horizontal FDI), have both a positive and economically significant effect on firm-level volatility. We find, however, that increasing the intensity of sales through foreign affiliates has a stronger effect on volatility than a similar change in export intensity. We also uncover evidence consistent with the notion that firms’ need to use external finance to cover the substantial costs involved in reaching foreign consumers can be an important channel through which firms’ participation in international markets increases their exposure to economic uncertainty.
Citation
Girma, S., Lancheros, S., & Riaño, A. (in press). Global engagement and returns volatility. Oxford Bulletin of Economics and Statistics, 78(6), https://doi.org/10.1111/obes.12150
Journal Article Type | Article |
---|---|
Acceptance Date | Jun 14, 2016 |
Online Publication Date | Jul 6, 2016 |
Deposit Date | Jun 16, 2016 |
Publicly Available Date | Jul 6, 2016 |
Journal | Oxford Bulletin of Economics and Statistics |
Print ISSN | 0305-9049 |
Electronic ISSN | 1468-0084 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
Volume | 78 |
Issue | 6 |
DOI | https://doi.org/10.1111/obes.12150 |
Keywords | Volatility, Stock Returns, Exports, FDI, External Finance Dependence, Japan. |
Public URL | https://nottingham-repository.worktribe.com/output/801904 |
Publisher URL | http://onlinelibrary.wiley.com/doi/10.1111/obes.12150/abstract;jsessionid=8304FFAB83E6DDC91FEB642A06405D47.f01t01 |
Additional Information | This is the peer reviewed version of the following article: Girma, S., Lancheros, S. and Riaño, A. (2016), Global Engagement and Returns Volatility. Oxford Bulletin of Economics and Statistics, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/obes.12150. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Contract Date | Jun 16, 2016 |
Files
GLR version to submit 150616.pdf
(594 Kb)
PDF
You might also like
The Wage and Employment Consequences of Ownership Change
(2013)
Journal Article
Dynamic capital structure and political patronage: the case of Malaysia
(2013)
Journal Article
Rationalizing the value premium in emerging markets
(2013)
Journal Article
Is education the best contraception: the case of teenage pregnancy in England?
(2015)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: discovery-access-systems@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search