Desai, Mihir A.; Foley, C. Fritz; Forbes, Kristin J. - In: Review of Financial Studies 21 (2008) 6, pp. 2857-2888
This article examines how financial constraints and product market exposures determine the response of multinational and local firms to sharp depreciations. U.S. multinational affiliates increase sales, assets, and investment significantly more than local firms during, and subsequent to,...