The channels of international comovement

Arbeitspapier

How does exposure to international markets affect returns and cash flow comovements? Foreign bond owners, lenders, affiliates, investors, customers, and suppliers all transmit country shocks to companies. Most multinationals have many of these exposures simultaneously within the same foreign market. Returns and cash flows of two companies comove when exposed to the same country through the same channel. Within-country exposure through different channels is generally associated with lower comovement, in line with an operational hedging strategy. This evidence can help reconcile how, on average, increased market integration does not lead to increased comovement.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers ; No. 23-16

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; International Lending and Debt Problems ; Portfolio Choice; Investment Decisions ; International Financial Markets
• Thema: Return comovement ; business cycle ; multinationals ; FDI ; international financing ; supply chain ; foreign exposure

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Barbiero, Omar
• Ereignis: Veröffentlichung
• (wer): Federal Reserve Bank of Boston
• (wo): Boston, MA
• (wann): 2023

Weitere Informationen

• DOI: doi:10.29412/res.wp.2023.16
• Handle: http://hdl.handle.net/10419/284093
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ