This paper attempts to explain how institutions in the reform era of China have evolved by looking into the FDI policies and regulations. As history matters, we don t look solely into the previous direct stage to the reform era, and rather look into a longer history starting from prior to the...

Investment activities across borders have significantly intensified in recent years in an attempt to cut costs via re-location of production, and to get closer to the ultimate customers in emerging markets. Central Europe, the immediate neighbourhood of Hungary is no exception either: the region...

Taxes play an important role in determining the capital structure of companies. Consequently,a multinational company would choose its capital structure according to differencesin international taxation. Unlike purely national firms, multinationals can also use intercompanyloans to shift profits...

This paper analyzes the impact of taxes and lending conditions on the financial structure ofmultinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates ofGerman multinationals in 26 countries in the period from 1996 until 2003. In accordance withthe theoretical...

This empirical research study deals with an interesting, yet little explored, comparative relationship between cost of equity capital and leverage in matched sets of U.S. domestic firms and multinational corporations (MNCs) in a cross-sectional as well as time-series framework. Applying the...

The study extends the corporate finance and taxation literature by analyzing the existence and convergence towards a regression based target capital structure of newly acquired subsidiaries, private and public ones, in an international context. The pre-merger deviation of the new subsidiary's...

This study investigated one of the issues in modern finance. It attempts to identify factors that affect a firm's capital structure under international or domestic context. However, this paper differed from past researches by using sample data in that the sample data from firms with headquarters...

Using novel data on detailed country-level sales exposures of U.S. multinational companies (MNCs) and unique identification strategies, we show that international cash flow diversification enhances firm debt capacity, but the magnitude of this effect varies with the innate country institutional...

We propose a novel approach for studying optimal capital structure under the prevalent corporate income tax regime where full tax deductibility of interest is permitted. Then, following the OECD proposed BEPS (Base Erosion and Profit Shifting) framework, we impose an EBITDA-based limit on the...