Relationship between Corporate International Diversification and Corporate Efficiency: does the Optimal Degree of Corporate Internationalization Exist?

Abstract

Author: Dmitry Y. Shcherbakov - National Research University "Higher School of Economics".

The article contains the review of literature devoted to the identification of a relationship form between the degree of international diversification and the efficiency of business. The main stages of evolution of the studied hypotheses and the corresponding quantitative models have been distinguished. The article contains a discussion of the key results of the studies: internationalization stages have been defined (at each stage the efficiency of international diversification is different), characteristics of the optimal degree of international diversification have been described. The generalization of these results allows us to draw a hypothesis concerning the reasons of different international diversification efficiency on the developed and developing capital markets.