Internationalization, foreign exchange exposure and firm risk

Napaporn Likitwongkajon, Chaiporn Vithessonthi

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This paper examines the effect of internationalization on variation in operating performance. Analyzing a sample of non-financial firms in Switzerland during 2000–2020, we document two key findings. First, internationalization is positively associated with variation in operating performance. However, neither operational-hedging internationalization nor revenue-seeking internationalization moderates the relation between internationalization and variation in operating performance. Second, our findings show that the unhedged foreign exchange exposure neither strengthens nor weakens the effect of internationalization on variation in operating performance. Further analyses show that internationalization is not associated with firm performance.

Original languageEnglish
Article number102334
Number of pages16
JournalInternational Review of Financial Analysis
Volume83
DOIs
Publication statusPublished - Oct 2022
Externally publishedYes

Keywords

  • Firm risk
  • Foreign exchange exposure
  • Foreign investments
  • Performance volatility
  • Switzerland

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