Journal ArticleDOI
Capital Structure and Cost-of-Capital for the Multinational Firm
TLDR
In this paper, a review of recent developments in models dealing with capital structure and cost of capital for the multinational firm is presented, with a summary of financial policy prescribed for the firm by the present state of knowledge.Abstract:Â
This paper reviews recent developments in models dealing with capital structure and cost of capital for the multinational firm. A number of issues which bear upon the financing decisions of the multinational corporation are addressed, and related to underlying theoretical and empirical questions with regard to the degree of segmentation or integration of international money and capital markets and the efficiency of the foreign exchange market. Data problems, areas of conflict, and topics for future research are identified. The paper concludes with a summary of financial policy prescribed for the firm by the present state of knowledge.read more
Citations
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Journal ArticleDOI
Interactions Between Domestic and Foreign Investment
TL;DR: In this article, the authors studied both the domestic and foreign fixed investment expenditures of a sample of US multinational firms and found that there are significant interactions between expenditures in the different locations of different locations.
Journal ArticleDOI
Internal capital networks as a source of MNC competitive advantage: Evidence from foreign subsidiary capital structure decisions
Raj Aggarwal,NyoNyo A. Kyaw +1 more
TL;DR: In this paper, the authors used data from US multinational company affiliates in 62 countries and found that MNC affiliates in countries with low credit availability, poor creditor protections, high political risks, and high inflation are found to bear high interest costs and multinational affiliate debt ratios are high in high tax countries.
Journal ArticleDOI
Capital Structure Differences among Large Asian Companies
TL;DR: This article conducted an empirical study of the capital structures of large Asian companies and found that both country and industry are significant factors influencing capital structure in Asia, and that companies must take these differences into account in developing and setting capital structure, financing, subsidiary evaluation, and management policies for their Asian operations.
Journal ArticleDOI
Capital Structure Among Latin American Companies
Raj Aggarwal,G. Baliga +1 more
TL;DR: In this paper, the results of an empirical study of the determinants of the capital structure of large Latin American companies are reported, with regard to the country, industry, and size of a company.
Journal ArticleDOI
Internationalization through foreign listing: A review and future research agenda
Anish Purkayastha,Vikas Kumar +1 more
TL;DR: A systematic review of 66 studies from 25 journals indicates fragmentation of the literature across the macro and firm-specific perspectives and a limited usage of current international business theories in research on foreign listing.
References
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Journal ArticleDOI
Capital asset prices: a theory of market equilibrium under conditions of risk*
TL;DR: In this paper, the authors present a body of positive microeconomic theory dealing with conditions of risk, which can be used to predict the behavior of capital marcets under certain conditions.
Journal Article
The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
Journal ArticleDOI
A critique of the asset pricing theory's tests Part I: On past and potential testability of the theory
TL;DR: In this paper, a mathematical equivalence between the individual return/beta linearity relation and the market portfolio's mean-variance efficiency is discussed, which implies that every individual asset must be included in a correct test.
Posted Content
International Diversification of Investment Portfolios
Haim Levy,Marshall Sarnat +1 more