Stock price reaction to international investment and divestiture and management
of currency operating exposure
Kim, Yong-Cheol. Journal of Economics and Business. New York: Sep/Oct
1997.Vol.49, Iss. 5; pg. 419, 19 pgs
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Abstract (Document Summary)
The effect of international investment on firm value and the effectiveness of expansion
into or retraction from foreign operation is analyzed. Stock-price reactions, over a period
of significant change in international operational decisions by the firm were examined
using event study methods. The results show that decisions on international investments
and divestiture have a positive stock-price reaction. However, the effect on firm value
varied by industry, exchange rate changes and the degree of foreign involvement before
the event.