개별기업의 국제다각화가 자기자본비용에 미치는 영향 = 한국기업을 중심으로

다국어 초록 (Multilingual Abstract)

This paper examines the potential effect of corporate international diversification on cost of equity capital for Korean firms. Corporate international diversification is defined as a firm`s strategy by which a firm conducts its businesses in multiple countries at the same time. In an ex-ante sense, more internationally diversified firms may decrease their cost of equity capital through reduced volatility of future cash flows and/or reducing more effectively unsystematic risks by investing into various countries. However, it is also possible that cost of equity capital of more internationally diversified firms may increase since they will be exposed to greater foreign exchange translation risks or political risks of other countries and/or since they may have higher agency costs for their controls of managers located out of their home country of domicile. By using 755 Korean firm/year observations between 2000 and 2005, we find that the level of corporate international diversification, which is measured by the relative ratio of overseas sales (or assets) to total sales (or assets), is positively associated with ex-ante cost of equity capital, which is proxied for by implied cost of equity capital derived from equity valuation model, even after well-known risk proxies are controlled for. Thus, we conclude that more internationally diversified Korean firms increase their cost of equity capital. This is the first study to examine the effect of corporate international diversification on cost of equity capital for Korean firms. We believe that our empirical evidence may shed some lights on our understanding of the potential effect of corporate international diversification on various aspects of firms.

참고문헌 (Reference)

1 김석수, "국제다각화전략이 기업성과에 미치는 영향" 한국무역학회 31 (31): 5-19, 2006

2 정인식, "국제다각화가 기업성과에 미치는 영향에 대한 연구국제다각화가 기업성과에 미치는 영향에 대한 연구-수출업체를 중심으로-" 한국무역학회 28 (28): 139-155, 2003

3 이장호, "국제다각화, 제품다각화 및 조직적 학습이 기업의 가치에 미치는 영향" 한국경영학회 32 (32): 4-1315, 2003

4 Lessard, D., "World, National, and Industry Factors in Equity Returns" 24 : 379-391, 1974

5 Lee, C., "What is the Intrinsic Value of the Dow?" 54 : 1693-1741, 1999

6 Kemsley, D., "Valuation of Debt Tax Shield" 57 (57): 2045-2073, 2002

7 Gebhardt, W., "Toward an Implied Cost of Capital" 39 : 135-176, 2001

8 He, J., "The Foreign Exchange Exposure of Japanese Multinational Corporations" 53 : 733-753, 1998

9 Gordon, R., "The Finite Horizon Expected Return Model" 53 : 52-61, 1997

10 Errunza V., "The Effects of International Operations on Market Value of the Firm: Theory and Evidence" 36 : 401-417, 1981

11 Modigliani, F., "The Cost of Capital, Corporation Finance and the Theory of Investment" 48 : 261-297, 1958

12 Goldberg, S., "The Association between the Level of International Diversification and Risk" 6 : 1-25, 1995

13 Reeb, D., "Systematic Risk in the Multinational Corporation" 29 : 263-279, 1998

14 Fama, E., "Risk, Return and Equilibrium: Empirical Test" 81 : 607-636, 1973

15 Malkiel, B., "Risk and Return Revisited" 23 : 9-14, 1997

16 Geringer, M., "Product and International Diversification among Japanese Multinational Firms" 21 (21): 51-80, 2000

17 Easton, P., "PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital" 79 : 73-95, 2004

18 Myerson, B, "Optimal Coordination Mechanisms in Generalized Principal-Agent Problems" 10 : 67-81, 1982

19 Grant, M., "Multinationality and Performance among British Manufacturing Companines" 18 : 79-89, 1987

20 Lee, K., "Multinational Corporations vs. Domestic Corporations: International Environmental Factors and Determinants of Capital Structure" 19 : 195-257, 1988

21 Robbins, S., "Money in the Multinational Enterprise: A Study in Financial Policy" Basic Books 1973

22 Barth, M., "Market Rewards Associated with Patterns of Increasing Earnings" 37 : 387-413, 1999

23 Agmon, T., "Investor Recognition of Corporate International Diversification" 32 : 1049-1055, 1977

24 Errunza V., "International Corporate Diversification, Market Valuation, and Size-Adjusted Evidence" 34 : 727-745, 1984

25 Gode, D., "Inferring the Cost of Capital Using the OhlsonJuettner Model" 8 : 399-431, 2003

26 Fama, E, "Industry Costs of Equity" 43 : 153-193, 1997

27 Sung Yoon Ahn, "Implied Cost of Equity Capital in Earnings-Based Val-uation Model: Evidence from Korea" 한국증권학회 37 (37): 599-626, 2008

28 Reeb, D., "Firm Internationalization and Cost of Debt Financing:Evidence from Non-provisional Publicly Traded Debt" 36 (36): 395-414, 2001

29 Shapiro, A., "Financial Structure and the Cost of Capital in the Multinational Corporation" 13 : 211-266, 1978

30 Elton, E., "Expected Return, Realized Return, and Asset Pricing Tests" 54 : 1199-1220, 1999

31 Ohlson, J., "Expected EPS and EPS Growth as Determinants of Value" 10 : 349-365, 2005

32 Bartov, E., "Exchange Rate Variability and the Riskiness of U.S. Multinational Firms: Evidence from the Breakdown of Bretton Woods" 42 : 105-132, 1996

33 Liu, J., "Equity Valuation Using Multiples" 40 : 135-172, 2002

34 Ohlson, J., "Earnings, Book Values, and Dividends in Equity Valuation" 11 : 661-687, 1995

35 Hughes, L., "Corporate International Diversification and Market Assigned Measures of Risk and Diversification" 10 : 627-637, 1975

36 Fama, E., "Common Risk Factors in the Returns on Stocks and Bonds" 33 : 3-56, 1993

37 Bodnar, G., "Both Sides of Corporate Diversification:The Value Impacts of Global and Industrial Diversification" University of Pennsylvania 1998

38 Harris, M., "Asymmetric Information, Incentives and Intrafirm Resource Allocation" 28 : 604-620, 1982

39 Amihud, Y., "Asset Pricing and the Bid Ask Spread" 17 : 223-249, 1986

40 Botosan, C., "Assessing Alternative Proxies for the Expected Risk Premium" 80 (80): 21-53, 2005

41 Shaked, I., "Are Multinational Corporations Safer?" 16 : 83-106, 1986

42 Gomes, K., "An Empirical Examination of the Form of the Relationship between Multinationality and Performance" 30 : 173-188, 1999

43 Burgman, T., "An Empirical Examination of Multinational Capital Structure" 27 : 553-570, 1996