Journal article
Does purchasing stock in Australian multinational corporations create international portfolio diversification?
Multinational Business Review, Vol.10(1), pp.79-83
2002
Abstract
While Australia leads the US in direct stock ownership by private individuals, Australian investors perceive foreign shares as risky and question if the benefits of international portfolio diversification can be achieved by purchasing shares in multinational corporations. Attempting to answer this question, this study compares the weekly returns, total risk and Beta of a portfolio of Australian based multinational corporations to a portfolio of Australian domestic companies. Given that the MNC Beta exceeds the domestic Beta yet the returns are not statistically different, investment in MNC shares does not appear to provide international diversification benefits to Australian shareholders..
Details
- Title
- Does purchasing stock in Australian multinational corporations create international portfolio diversification?
- Authors
- April Wright (Author) - University of the Sunshine Coast - Faculty of BusinessS McCarthy (Author) - University of Southern Queensland
- Publication details
- Multinational Business Review, Vol.10(1), pp.79-83
- Publisher
- University of Detroit Mercy, College of Business Administration
- Date published
- 2002
- ISSN
- 1525-383X
- Organisation Unit
- University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99448820502621
- Output Type
- Journal article
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