Article
The Effect of International Diversification on Corporate Financing Policy
Journal of Business Research
(1988)
Abstract
The purpose of this study is to investigate whether international operations have a discernible effect on the financing policies of U.S.- based firms. Results obtained indicate that firms with notable foreign involvement have target leverage ratios significantly below those of their domestic counterparts. It is also found that multinationals secure a greater portion of their borrowing from short-term sources. These results are rationalized in terms of the market imperfections that the multinationals face and/or exploit.
Disciplines
Publication Date
1988
Citation Information
Ali M Fatemi. "The Effect of International Diversification on Corporate Financing Policy" Journal of Business Research Vol. 16 Iss. 1 (1988) Available at: http://works.bepress.com/alifatemi/29/