International Diversification of the Lower 400 Firms of the S&P 500 Index by ProQuest


During the twelve year period from 1992 through 2003, little overall change occurred in international business activity within a representative group of approximately 100 large, US domestic and multinational firms. This research examines recent, more appropriate data from 1998 through 2004 for a second group of firms, the lower 400 of the S[approximate]P 500, to determine if the earlier published findings are true for the slightly smaller and less prominent firms. The measures of the size (ie, allocation) of a US multinational firm's foreign operations are derived from the proportion(s) of international sales revenue (in US dollars) to the total revenue (both domestic and foreign) of the firm. The raw data for this study is from COMPUSTAT. The international revenue index (IRI) of this study is based on the format of the Herfindahl-Hirschman Index. Portfolios containing equity securities of the lower 400 firms of the S&P 500 have experienced increasing international diversification during the period, 1998-2004.

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