Abstract
This article contributes to the firm market diversification literature by using a bivariate probit model analogous to SURE vs. OLS for probit estimation to examine the market diversification decisions for a panel of UK firms. We extend the current literature to include director remuneration and firm-specific exchange rates. We find that firm size, wages, R&D, directors remuneration and the level and variability of exchange rates all have a significant impact on the probability of a firm diversifying into foreign markets.