| Article ID: | iaor200937789 |
| Country: | Germany |
| Volume: | 165 |
| Issue: | 1 |
| Start Page Number: | 123 |
| End Page Number: | 143 |
| Publication Date: | Jan 2009 |
| Journal: | Annals of Operations Research |
| Authors: | Bellalah Mondher, Wu Zhen |
This paper extends the theory of corporate international investment in Choi (1989) in an environment where the segmentation of international capital markets for investors or the presence of agency costs provide some independence to corporate decisions. The model shows that the real exchange risk, the competition between firms in different markets and diversification gains affect corporate international investment.