INTERNATIONAL DIVERSIFICATION STRATEGIES AND THEIR EFFECTS ON THE PERFORMANCE OF COMPANIES LISTED ON B3
DOI:
https://doi.org/10.14392/asaa.2022150201Keywords:
International Diversification, Cash, Environmental Contingencies, PerformanceAbstract
Objective: The research seeks to verify whether cash moderated by environmental contingencies (munificence and dynamism) mediates the relationship between international diversification and operational performance of Brazilian exporting companies listed on B3.
Method: Brazilian exporting companies listed on B3 were analyzed from 2010 to 2020 and multivariate analyzes were performed with panel data with fixed and dynamic effects, in this case, using the System-GMM method, through the moderate mediation model proposed by Muller, Judd and Yzerbyt (2005).
Results: The results indicate that cash, moderated by the instability and growth of the sector, mediates the relationship between international diversification and the performance of the exporting companies in the sample. The indirect effect of international diversification on performance is better through greater liquidity of exporting companies in a less unstable and munificent environment. The findings suggest that the managers of exporting companies should analyze the cash reserves in the expansion of the business to the foreign market, taking into account the task environment in which the company operates.
Contributions: The present study brings contributions to the theory by expanding the studies of the effects of international diversification on the performance of companies, suggesting that liquidity has a strategic value in the expansion of business to the foreign market. Empirically, it brings important practical implications on the decision-making process of constitution and liquidity management, showing that managers of exporting companies must analyze the costs and benefits of liquidity, observing the instability and growth of the sector to improve the performance of companies.
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