Previous work shows that multinationality creates firm value due to the potential of multiple host countries to provide operational flexibility. This paper examines whether this value effect on the stock market is backed by a profitability effect of exercising operational flexibility through...

Common reasons mentioned for a firm's internationalization are related to advantages for the firm. However, if firms are conceptualized as political coalitions, this view does not seem to be sufficient to explain why and to what extent firms internationalize. A principal-agent theoretical...