Surprisingly, empirical studies find that MNEs have a higher level of systematic risk than their domestic counterparts.

Question

Quizplus · Accepted Answer

Empirical studies have found that multinational enterprises (MNEs) have a higher level of systematic risk than their domestic counterparts. This is possibly due to the exposure of MNEs to different economic, political, and regulatory environments in different countries, which can increase their risk profile.

Surprisingly, Empirical Studies Find That MNEs Have a Higher Level