Aggarwal, Raj; Kyaw, NyoNyo Aung - In: International Review of Financial Analysis 19 (2010) 2, pp. 140-150
Textbook theory posits that multinational firms are large and diversified and should have higher debt capacity. In contrast, debt capacity of such firms can be expected to be lower because of the additional risks of foreign operations. This puzzle is unresolved by the empirical literature. Also,...