| In this article we will show that there is a significant difference between MNCs (multinational companies) and local companies when dealing with a domestic crisis. MNCs are believed to have more financial resources,competencies and experience than local companies. These advantages are derived from operating in many countries and local conditions. We will apply this hypothesis to the Indonesian economic crisis by using three time periods; before, during and after the crisis. The most important finding of this research is that among MNCs there is less fluctuation of competence and capability in dealing with a domestic crisis. We will show that the value of the MNCs standard of deviation from many criteria is less than local companies. Our research also provides the variables for market leverage, volatility and firm size as predictors of a firm’s performance during an economic crisis. |