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Article Dans Une Revue Journal of International Money and Finance Année : 2020

Cross-border investments and uncertainty: Firm-level evidence

Rafael Cezar
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Timothée Gigout
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Fabien Tripier
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Résumé

This paper studies the impact of uncertainty on cross-border investments. We build a data-set of firm-level outward Foreign Direct Investments between 2000 and 2015. We create a time and country varying measure of uncertainty based on the dispersion of idiosyncratic investment returns. An increase in uncertainty delays cross-border flows to the affected country. Yet, this average effect hides strong heterogeneity. Firms with low ex-ante performance durably reduce their foreign investments. Meanwhile high-performing firms increase their investments after the initial shock. We interpret these results as the evidence of a cleansing effect of uncertainty shocks among multinational firms in the presence of financial frictions. © 2020
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Dates et versions

hal-02877942 , version 1 (07-09-2022)

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Paternité - Pas d'utilisation commerciale

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Rafael Cezar, Timothée Gigout, Fabien Tripier. Cross-border investments and uncertainty: Firm-level evidence. Journal of International Money and Finance, 2020, 108, ⟨10.1016/j.jimonfin.2020.102159⟩. ⟨hal-02877942⟩
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