A Multinational Perspective on Capital Structure Choice and Internal Capital Markets

摘要: This paper analyzes the capital structures of foreign affiliates and internal markets multinational corporations. Ten percent higher local tax rates are associated with 2.8% debt/asset ratios, borrowing being particularly sensitive to taxes. Multinational financed less external debt in countries underdeveloped or weak creditor rights, reflecting significantly costs. Instrumental variable analysis indicates that greater from parent companies substitutes for three-quarters reduced induced by market conditions. firms appear employ opportunistically overcome imperfections markets.