Journal of
Marketing Development and Competitiveness
Scholar Gateway
Abstracts prior to volume 5(1) have been archived!Issue 5(1), October 2010 -- Paper AbstractsGirard (p. 9-22)Cooper (p. 23-32)Kunz-Osborne (p. 33-41)Coulmas-Law (p.42-46)Stasio (p. 47-56)Albert-Valette-Florence (p.57-63)Zhang-Rauch (p. 64-70)Alam-Yasin (p. 71-78)Mattare-Monahan-Shah (p. 79-94)Nonis-Hudson-Hunt (p. 95-106) 
JOURNAL OF ACCOUNTING AND FINANCE
Why Shareholders and Debt-Holders Value Internationally Diversified Firms:
Evidence from the United States
Author(s): Kingsley O. Olibe, Robert H. Strawser, William R. Strawser
Citation: Kingsley O. Olibe, Robert H. Strawser, William R. Strawser, (2011) "Why Shareholders and Debt-Holders Value Internationally Diversified Firms: Evidence from the United States" Vol. 11, Iss. 2, pp. 26 - 52
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper empirically tests whether international diversification is associated with market value and debt. Specifically, we relate the levels of equity and debt to firms’ foreign assets and foreign sales. We find that market value is positively related to international diversification, indicating significant gains to share-holders of these firms. Alternatively, the level of debt is positively (negatively) associated with the level of foreign assets (foreign sales. We also consider whether debt levels alter the valuation of foreign assets and foreign sales, finding that the association between market value and foreign assets is stronger for highly-leveraged firms.
