Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.jcorpfin.2012.08.001
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dc.titleDo multinational and domestic corporations differ in their leverage policies?
dc.contributor.authorPark, S.H.
dc.contributor.authorSuh, J.
dc.contributor.authorYeung, B.
dc.date.accessioned2013-10-09T06:53:32Z
dc.date.available2013-10-09T06:53:32Z
dc.date.issued2013
dc.identifier.citationPark, 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
dc.identifier.issn09291199
dc.identifier.urihttp://scholarbank.nus.edu.sg/handle/10635/44298
dc.description.abstractThis 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.
dc.description.urihttp://libproxy1.nus.edu.sg/login?url=http://dx.doi.org/10.1016/j.jcorpfin.2012.08.001
dc.sourceScopus
dc.subjectCapital structure
dc.subjectMultinationals
dc.subjectSecurity issuance
dc.subjectSpeed of leverage adjustment
dc.typeArticle
dc.contributor.departmentBUSINESS POLICY
dc.description.doi10.1016/j.jcorpfin.2012.08.001
dc.description.sourcetitleJournal of Corporate Finance
dc.description.volume20
dc.description.issue1
dc.description.page115-139
dc.identifier.isiut000315761300008
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