Some key developments in international financial management

Breuer, Wolfgang; Vargas, Santiago Ruiz de

doi:10.1007/s11573-021-01039-8

Cited by 6 publications

(6 citation statements)

References 45 publications

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“…3, 2022 note that "ICAPM determines what is the equilibrium expected return on financial assets when the expected return is measured in the investor's local currency and is shaped by constant changes in exchange rates". Breuer and Ruiz de Vargas (2021) also confirm that models developed in an international context face additional complexity and need to account for exchange rate risks.…”

Section: Literature Reviewsupporting

confidence: 64%

Risk, Return and International Portfolio Diversification: K-Means Clustering Data

Дзюба¹,

Glukhova

Shtogrin

2022

BJES

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The work is devoted to the study of the international investment portfolio, its features such as risk, profitability and the level of international diversification, as well as global flows of portfolio investments. The methodology of the work is as follows. The paper develops k-means clustering model to study the patterns of global portfolio investment flows and equity markets. The model groups 30 developed and emerging stock markets according to three variables: return, risk and the level of international diversification. Thus, the main purpose of this paper is to investigate different stock markets on a global scale through an in-depth analysis of the respective market portfolios and their measures of risk, return and international diversification, as well as their interrelationships. The researcher develops and builds the model in such a way as to either confirm or refute the hypotheses put forward. The results of the study demonstrate the following results, which present opportunities for further research. The study supports the hypothesis that portfolios of investors from developed stock markets have a better level of international diversification than portfolios of investors from emerging stock markets. However, there is high within-group variation in the levels of international diversification among developed markets. There are three groups of developed markets based on the level of international diversification of investors in their respective markets: low-level markets (ca. 22%); mid-level markets (43%); and high-level markets (ca. 61%), while emerging markets are generally more heterogeneous. The hypothesis that stock markets that are domestic to investors with higher levels of international diversification have higher rates of return and lower rates of risk has not been confirmed. In general, developed stock markets are characterized by higher returns and international diversification with lower risk ratios. Nevertheless, the higher level of international diversification in developed market portfolios is not always accompanied by better stock performance. The best risk-return ratio (return – 0.46%, risk – 5.56%) is observed for markets from the cluster with an average level of international diversification. While the markets in the cluster with the highest level of international diversification have unreasonably high-risk ratios, which are not compensated by better returns. Markets in the cluster with lower levels of international diversification have unreasonably low rates of return that are not accompanied by correspondingly lower risks.

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Section: Literature Reviewsupporting

confidence: 64%

Risk, Return and International Portfolio Diversification: K-Means Clustering Data

Дзюба¹,

Glukhova

Shtogrin

2022

BJES

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“…Financial performance plays undeniable role in regulating the investments and assets with the costs and revenues within all sizes of the forest biomass and bioenergy SCNs (Dashtpeyma & Ghodsi, 2021;Lo et al, 2021). Constant improvement of the performance quality for financial aspect provides a situation for managers to make effective decisions just in time (Breuer & de Vargas, 2021). Hence, development and optimization of a detailed and on-going financial performance level will lead to a more resilient forest biomass and bioenergy SC.…”

Section: Financial Performancementioning

confidence: 99%

Forest biomass and bioenergy supply chain resilience: A conceptual decision-making model

Dashtpeyma¹,

Ghodsi²

2023

Global J. Eng. Technol. Adv.

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In recent years, with the increasing concerns about the global warming, limited non-renewable energy sources, and uncertainty in renewable energy sources accessibility, how to continuously supply clean sources of energy in form of a resilient system structure has become a topic of intense scholarly interest. Based on the milestone literature on the research field of renewable and non-renewable energies, forest biomass and bioenergy have significant compatibility with both industry and nature. Through this, our proposal contributes to supply one of the most available clean energy sources and direct this type of energy needed in an optimal way. The essential resilience components are determined and classified according to the theoretical and practical concepts. Then, this research is made use of a conceptual decision-making model based on third order confirmatory factor analysis to explore the interactions among the components in form of a network. The results reveal that the proposed model has sufficient validity and reliability levels. Finally, key interactions among the elements of model that contributed to most of the impacts on the forest biomass and bioenergy supply chain resilience were found to be optimized constantly within the network.

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“…Financial management involves three broad inter-related corporate finance decisions, namely, investment, financing, and dividend. It is important for parent firms to establish planning and controlling authority in financial management with subsidiaries (Rugman and Collinson, 2012;Nguyen and Rugman, 2015;Breuer and de Vargas, 2021;Eiteman et al, 2021). According to Ross (2004), investment and financing decisions involve the valuation of uncertain future cash flows.…”

Section: Theoretical Background Fsas/csas Frameworkmentioning

confidence: 99%

“…In the IB contexts, these decisions are affected by exchange rate risks. Therefore, the methodology used to support rational decision making in MNEs must capture the additional complexity that exchange rate risks and exchange rate forecasting pose (Rugman and Collinson, 2012;Breuer and de Vargas, 2021). Investment includes investment in fixed assets (called capital budgeting) and in current assets (called working capital).…”

Section: Theoretical Background Fsas/csas Frameworkmentioning

confidence: 99%

Export intensity of foreign subsidiaries of multinational enterprises

Nguyen

2022

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PurposeThe author contributes to the theory of the multinational enterprise by examining subsidiary-specific capability in financial management, defined as the stock of knowledge and capability to plan, manage, control and direct financial resources effectively and efficiently, and the perceptions of subsidiary managers of host country financial development as drivers of export intensity (the share of sales that are exported) of foreign subsidiaries of multinational enterprises (MNEs). The author theorizes that subsidiary-specific capability in financial management is conceptually a valuable subsidiary-specific advantage and it is as important as other traditional competitive advantages, such as research and development and marketing intensity. Perceptions of subsidiary managers of host country financial development are argued to be largely related to the characteristics of the host country-specific advantages.Design/methodology/approachThe author uses a survey dataset of the foreign subsidiaries of Western multinational enterprises (MNEs) together with other public data sources.FindingsThe author provides empirical evidence to support for these arguments that export intensity of MNE foreign subsidiaries depends on subsidiary-specific advantages and host country specific advantages.Originality/valueThe study broadens the understanding of the relationships between subsidiary-specific advantage in financial management, host country specific advantage, and export intensity of MNE foreign subsidiaries. In this way, the author makes an original contribution to new internalization theory by emphasizing the internal capability building of subsidiaries. The author discusses the implications of the findings for MNE foreign subsidiary managers, and policy makers because exporting is critical to the overall strategy of foreign subsidiaries, and it also contributes to the balance of trade and economic development of host countries where foreign subsidiaries operate.

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Some key developments in international financial management

Cited by 6 publications

References 45 publications

Risk, Return and International Portfolio Diversification: K-Means Clustering Data

Risk, Return and International Portfolio Diversification: K-Means Clustering Data

Forest biomass and bioenergy supply chain resilience: A conceptual decision-making model

Export intensity of foreign subsidiaries of multinational enterprises

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