Date of Award

2026

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

First Advisor

Dr. Mishita Mehra

Second Advisor

Dr. Heather Russell

Third Advisor

Dr. Maia Linask

Abstract

This thesis examines whether multinational enterprises (MNEs) are more resilient than domestic firms during major global shocks, using the 2008 Financial Crisis and COVID-19 as case studies. Although MNEs may benefit from diversification, internal capital markets, and foreign linkages, they may also face greater exposure to global demand shrinkage and supplychain disruption.

Using Compustat North America firm-level panel data from WRDS, this study analyzes publicly listed U.S. and Canadian firms across 2007–2013 and 2018–2024. Firm resilience is measured through net sales, net income, and gross profit using a two-way fixed effects panel model. Multinational status is identified through two different definitions to test robustness. The results show that MNEs often appear to recover faster than domestic firms in models without year fixed effects. However, after controlling for common macroeconomic trends, much of this advantage disappears. Overall, the findings suggest that multinationality does not automatically create resilience. The actual benefits depend on the type of shock, industry composition, and macroeconomic dynamics.

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