Finally, we analyze whether differences between blue-chip and mid-cap indices' degree of internationalization result from industry-specific effects.
We analyze blue-chip and mid-cap index constituents' degree of internationalization by comparing the percentages of employees based inside and outside of the firms' home country, percentages of domestic and foreign sales, and percentages of domestic and foreign corporate tax payments as documented in the firms' annual reports.
The analysis of the samples that include the combined data for France, Germany, and the UK reveals a consistent picture of higher degrees of internationalization of blue-chip than of mid-cap firms.
1% of the 56 blue-chip firms' employees work in the firms' domestic country and 59.
In Panel B of Table 1, we report blue-chip and mid-cap firms' percentages of employees based in Europe and in countries outside of Europe (RoW) as well as percentages of sales in Europe and in the RoW.
Overall, this step in our analysis reveals similar or even higher degrees of internationalization in blue-chip indices compared to mid-cap indices.
Investments in the French blue-chip index and the French mid-cap index provide similarly high degrees of internationalization.
Roughly 40% of both blue-chip and mid-cap index constituents' employees are based outside of Europe and about 45% of their sales are generated in non-European countries.
Panel A of Table 3 comprises German and RoW values for the three indicators employees, sales, and tax payments for German firms that are listed in the blue-chip index DAX30 and in the combined mid-cap index covering the MDAX and the TecDAX.