Sayek, Selin.
Multinational Affiliates and Local Financial Markets Selin Sayek. [electronic resource] / Selin Sayek. - Washington, D.C. : International Monetary Fund, 2004. - 1 online resource (26 p.) - IMF Working Papers; Working Paper ; No. 04/107 . - IMF Working Papers; Working Paper ; No. 04/107 .
We use data on the sources of debt finance of U.S. majority-owned foreign affiliates in 53 countries over the period 1983 to 2001 to examine the role of financial market development, and exposure to host country-specific risk on the financing choices of these affiliates. We find that total balance sheets are about four times as large as the cross-border component of foreign direct investment (FDI). The extent of financial leverage through local debt is positively related to host-country corporate tax rates, exchange rate variability, local currency-denominated sales, and financial development. Factors that further the role of local debt reduce that of parent company debt, and through this substitution overall leverage increases.
1451853017 : 15.00 USD
1018-5941
10.5089/9781451853018.001 doi
Capital Structure
Direct Investment
FDI
Financial Aspects of Economic Integration
Financial Development
Foreign Affiliates
Argentina
Egypt
Hong Kong Special Administrative Region of China
United Kingdom
United States
Multinational Affiliates and Local Financial Markets Selin Sayek. [electronic resource] / Selin Sayek. - Washington, D.C. : International Monetary Fund, 2004. - 1 online resource (26 p.) - IMF Working Papers; Working Paper ; No. 04/107 . - IMF Working Papers; Working Paper ; No. 04/107 .
We use data on the sources of debt finance of U.S. majority-owned foreign affiliates in 53 countries over the period 1983 to 2001 to examine the role of financial market development, and exposure to host country-specific risk on the financing choices of these affiliates. We find that total balance sheets are about four times as large as the cross-border component of foreign direct investment (FDI). The extent of financial leverage through local debt is positively related to host-country corporate tax rates, exchange rate variability, local currency-denominated sales, and financial development. Factors that further the role of local debt reduce that of parent company debt, and through this substitution overall leverage increases.
1451853017 : 15.00 USD
1018-5941
10.5089/9781451853018.001 doi
Capital Structure
Direct Investment
FDI
Financial Aspects of Economic Integration
Financial Development
Foreign Affiliates
Argentina
Egypt
Hong Kong Special Administrative Region of China
United Kingdom
United States