Expansion strategies of U.S. MNCs in latin America and the caribbean Article

Gleason, KC, Mathur, LK, Mathur, I et al. (1999). Expansion strategies of U.S. MNCs in latin America and the caribbean . 13(3), 273-291. 10.1080/088539099271973

cited authors

  • Gleason, KC; Mathur, LK; Mathur, I; Haar, J

authors

abstract

  • Significant economic activities in the Latin American and Caribbean countries (LACs) since the debt crisis of the early to mid-1980s have created opportunities for U.S. firms to expand their business presence in the region. This study provides evidence on the shareholders’ wealth effects of expansion by U.S. firms into the LACs. Three hundred twenty-two announcements of expansion to the LACs by U.S. firms during 1980 1996 are analyzed using event study methodology. Statistically significant excess returns of 0.52 percent are observed for the average expansion. Analysis of subsamples by mode of expansion shows that announcements of both FDI and non-FDI forms of expansion produce positive significant excess re turns. Significant positive reactions are observed for expansion to Brazil. Cross-sectional regression results provide additional insights into the determinants of wealth effects for these announcements. © 1999 Taylor & Francis.

publication date

  • January 1, 1999

Digital Object Identifier (DOI)

start page

  • 273

end page

  • 291

volume

  • 13

issue

  • 3