Impacts of international greenfield investment on firm valuation

Shao Chi Chang, Juei Chi Chang

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


Our study examines the announcement effects of 343 international greenfield investments by 289 U.S. firms for their impact on shareholder wealth. This paper develops five hypotheses based on the positive-multinational-network hypothesis. The evidence indicates that market reactions to announcements by firms entering developing countries are more favorable than those entering developed countries. In addition, the results show that the wealth effect for firms entering a host country for the first time is greater than for those that are already operating within the country. As for the long run, greenfield firms have shown improvement in their operating performance and stock performance.

Original languageEnglish
Pages (from-to)310-321
Number of pages12
JournalCanadian Journal of Administrative Sciences
Issue number4
Publication statusPublished - 2012 Dec

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Public Administration
  • Marketing
  • Management of Technology and Innovation


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