Publication:
Internationalization and the Evolution of Corporate Valuation

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dc.contributor.authorGozzi, Juan Carlos
dc.contributor.authorLevine, Ross
dc.contributor.authorSchmukler, Sergio L.
dc.date.accessioned2012-06-19T16:43:53Z
dc.date.available2012-06-19T16:43:53Z
dc.date.issued2006-06
dc.description.abstractBy documenting the evolution of Tobin's q before, during, and after firms internationalize, the authors provide evidence on the bonding, segmentation, and market timing theories of internationalization. Using new data on 9,096 firms across 74 countries over the period 1989-2000, they find that Tobin's q does not rise after internationalization, even relative to firms that do not internationalize. Instead, q rises significantly before internationalization and during the internationalization year. But then q falls sharply in the year after internationalization, quickly relinquishing the increases of the previous years. To account for these dynamics, the authors show that market capitalization rises before internationalization and remains high, while corporate assets increase during internationalization. The evidence supports models stressing that financial internationalization facilitates corporate expansion, but challenges models stressing that internationalization produces an enduring effect on q by bonding firms to a better corporate governance system.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/06/6822671/internationalization-evolution-corporate-valuation
dc.identifier.doi10.1596/1813-9450-3933
dc.identifier.urihttps://hdl.handle.net/10986/8431
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3933
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSETS
dc.subjectBONDS
dc.subjectBOOK VALUE
dc.subjectCOMPANY
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE VALUATIONS
dc.subjectCORPORATION
dc.subjectCORPORATIONS
dc.subjectCOST OF CAPITAL
dc.subjectDEBT
dc.subjectDISCLOSURE
dc.subjectDISCLOSURE REQUIREMENTS
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC MARKETS
dc.subjectEMERGING MARKETS
dc.subjectEQUITY CAPITAL
dc.subjectEXPANSION
dc.subjectEXPROPRIATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL MARKETS
dc.subjectFIRM SIZE
dc.subjectFIRMS
dc.subjectFOREIGN FIRMS
dc.subjectGROWTH RATE
dc.subjectHOME MARKETS
dc.subjectINCOME TAXES
dc.subjectINFLATION
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FIRMS
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINTERNATIONAL MARKET
dc.subjectINTERNATIONAL MARKETS
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTOR PROTECTION
dc.subjectLATIN AMERICAN
dc.subjectMARKET VALUE
dc.subjectNASDAQ
dc.subjectNYSE
dc.subjectOFFERINGS
dc.subjectOTC
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE PLACEMENT
dc.subjectPURCHASING
dc.subjectREAL GDP
dc.subjectSALES
dc.subjectSMALL FIRMS
dc.subjectSTATEMENT
dc.subjectSTATEMENTS
dc.subjectSTOCK PRICES
dc.subjectSTOCKS
dc.subjectVALUATION
dc.subjectVOLATILITY
dc.titleInternationalization and the Evolution of Corporate Valuationen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleInternationalization And The Evolution Of Corporate Valuation
okr.date.doiregistration2025-04-10T10:27:16.601968Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/06/6822671/internationalization-evolution-corporate-valuation
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.globalpracticeFinance and Markets
okr.guid752991468150319176
okr.identifier.doi10.1596/1813-9450-3933
okr.identifier.externaldocumentum000016406_20060530160901
okr.identifier.internaldocumentum6822671
okr.identifier.reportWPS3933
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/05/30/000016406_20060530160901/Rendered/PDF/wps3933.pdfen
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicSmall Scale Enterprise
okr.topicIndustry
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationad1ad457-a974-53de-815c-c7010e0fdd74
relation.isAuthorOfPublication.latestForDiscoveryad1ad457-a974-53de-815c-c7010e0fdd74
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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