TY - JOUR
T1 - Internationalization, foreign exchange exposure and firm risk
AU - Likitwongkajon, Napaporn
AU - Vithessonthi, Chaiporn
N1 - Funding Information:
The first author gratefully acknowledges financial support from Faculty of Business Administration and Accountancy at Khon Kaen University . The authors do not have any potential conflicts of interests.
Publisher Copyright:
© 2022 Elsevier Inc.
PY - 2022/10
Y1 - 2022/10
N2 - 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.
AB - 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.
KW - Firm risk
KW - Foreign exchange exposure
KW - Foreign investments
KW - Performance volatility
KW - Switzerland
UR - https://www.scopus.com/pages/publications/85135775474
U2 - 10.1016/j.irfa.2022.102334
DO - 10.1016/j.irfa.2022.102334
M3 - Article
AN - SCOPUS:85135775474
SN - 1057-5219
VL - 83
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
M1 - 102334
ER -