Impacto de la diversificación internacional sobre el desempeño de las multinacionales españolas

Using a comprehensive database with information on 197 Spanish multinationals for the period 2004-2012, a panel data analysis is performed. Econometric models are estimated by using the Generalized Method of Moments (GMM) (Blundell and Bond, 1998). Our findings show that the ID-P relationship in the case of Spanish multinationals is non-linear, specifically an inverted S curve and an M-shaped one, depending on the ID measures used. In both cases, performance increases when the number of countries and subsidiaries abroad is low. As the degree of internationalization increases, performance first decreases and then grows again, reflecting the different temporal dynamics of the benefits and costs of internationalization.