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.
Available at: http://works.bepress.com/alifatemi/29/