We examine financial constraints and forms of finance used for investment, byanalysing survey data on 157 large privatised companies in Hungary and Poland for theperiod 1998 – 2000. The Bayesian analysis using Gibbs sampling is carried out toobtain inferences about the sample companies’...

This essay gives an overview of the special features of funding foreign subsidiaries. The central issue discussed ist the possibility of funding by equity capital or borrowed capital in the form of loans an trade accounts payable.