TY  - BOOK
AU  - Sayek,Selin
AU  - Kang,Hyoung Goo
AU  - Lehmann,Alexander
AU  - Sayek,Selin
TI  - Multinational Affiliates and Local Financial Markets
T2  - IMF Working Papers; Working Paper
SN  - 1451853017 :
SN  - 1018-5941
PY  - 2004///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Structure
KW  - imf
KW  - Direct Investment
KW  - FDI
KW  - Financial Aspects of Economic Integration
KW  - Financial Development
KW  - Foreign Affiliates
KW  - Argentina
KW  - Egypt
KW  - Hong Kong Special Administrative Region of China
KW  - United Kingdom
KW  - United States
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/04795-9781451853018/04795-9781451853018/04795-9781451853018.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451853018
ER  -