Multinationality as a determinant of earnings persistence

Summarizes previous research on the links between multinationality and earnings persistence and presents a study which applies the autoregressive, integrated, moving-average time series model to 1990-1999 data on the largest US multinationals. Explains the methodology and presents the results, which...

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Bibliographic Details
Published in:Managerial finance 2002, Vol.28 (3), p.83-96
Main Authors: Riahi-Belkaoui, Ahmed, Alnajjar, Fouad K
Format: Article
Language:English
Subjects:
Accounting
Accounting research
Business education
Diversification
Earnings
Foreign investment
Mathematical models
Money markets
Multinational corporations
Multinationals
Operating leverage
Parameter estimation
Political risk
Profit
Profits
Risk assessment
Statistical analysis
Strategic management
Studies
Time series
Time series analysis
USA
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Summary:Summarizes previous research on the links between multinationality and earnings persistence and presents a study which applies the autoregressive, integrated, moving-average time series model to 1990-1999 data on the largest US multinationals. Explains the methodology and presents the results, which show a negative relationship between the level of multinationality and earnings persistence measures. Puts this down to a negative link between multinationality and performance; and reduced risk through international diversification and profit stabilization.
ISSN:0307-4358
1758-7743
DOI:10.1108/03074350210767753