Abstract
Noting the difficulties of measuring a company’s export performance and especially financial performance, we develop a new measurement approach grounded on modern portfolio theory. The export intensities and the global financial performance of exporting companies being known, this approach allows deducing the export margin ratio, export risk and correlation of domestic activities with export activities. Using a sampling from French companies in the wine industry from 2001-2005, these implicit financial export performance characteristics are estimated. Main results found: export activities permit a better global margin-risk relationship essentially due to diversification gains because export financial performance seems to be inferior to the domestic one for a great majority of companies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The International Food and Agribusiness Management Review
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
