Please use this identifier to cite or link to this item:
|Title:||Do multinational and domestic corporations differ in their leverage policies?|
Speed of leverage adjustment
|Citation:||Park, S.H., Suh, J., Yeung, B. (2013). Do multinational and domestic corporations differ in their leverage policies?. Journal of Corporate Finance 20 (1) : 115-139. ScholarBank@NUS Repository. https://doi.org/10.1016/j.jcorpfin.2012.08.001|
|Abstract:||This paper examines the leverage policies of multinational corporations (MNCs) in comparison to those of domestic corporations (DCs). Prior studies document that MNCs have lower leverage levels. However, our analysis of U.S. firms over the period 1981-2010 reveals that the leverage levels of MNCs are not significantly lower than those of DCs if we control for key firm characteristics related to leverage levels. We also find that MNCs and DCs do not differ significantly in terms of their debt maturity structure, the speed of leverage adjustments, or the propensity to issue debt vs. equity (or vs. not to issue debt). The results suggest that MNCs' financial policies at the corporate level are not significantly influenced by their greater exposures, in comparison to DCs, to market imperfections such as taxes and regulations. Interestingly, however, our additional analysis of MNCs from outside the U.S. reveals that non-U.S. MNCs issue securities more frequently and adjust leverage faster than their domestic peers. © 2012.|
|Source Title:||Journal of Corporate Finance|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Aug 16, 2018
WEB OF SCIENCETM
checked on Aug 1, 2018
checked on Aug 10, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.