Investment Performance of U.S.-Based Multinational Companies: Comments and a Perspective on International Diversification of Real Assets: A Reply

In a comment [2] on our recent article [1] dealing with the stock market performance of a sample of U.S.-based multinational firms, the author reviews some interesting conceptual and empirical issues regarding the benefits of international diversification of real assets. While the author agrees generally with our findings, he contends that our results may somewhat understate the benefits of international diversification. He adds further that there exists enough evidence to suggest that investors do recognize the benefits of international diversification through investing in multinational firms.© 1980 JIBS. Journal of International Business Studies (1980) 11, 105–106