ZHANG, Jiarui; HOU, Lei - In: Journal of Comparative Economics 42 (2014) 3, pp. 652-669
. The hidden information is the productivity shock to FDI. Banks are willing to monitor the risk of FDI, while bondholders …’ productivity levels, the riskiness of FDI, and the relative costs of bank finance and bond finance are three key determinants of … the firm’s financing choice. Countries with higher productivity, higher bank costs, or investment in less risky …