International Corporate Diversification and Financial Flexibility

• 成果类型: Article
• 署名作者: Jang, Yeejin
• 署名单位: Purdue University System; Purdue University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx065
• 发表日期: 2017
• 页码: 4133
• 关键词: GLOBAL DIVERSIFICATION; lending relationships; capital-markets; firm; distance; INFORMATION; selection; discount; demand; CHOICE

摘要

If the location of firm operations is relevant for financing, multinationals should have easier access to different foreign sources of funding relative to domestic firms. I document that U.S. multinationals are more likely to borrow from a foreign bank and to issue international bonds than are U.S. domestic firms. Multinationals are less affected than domestic firms by capital market dislocations because of greater funding flexibility. Using the 2007-2009 financial crisis as a capital supply shock, I find that multinationals relied more on foreign funding sources in bank loans and consequently reduced domestic investment less than did domestic firms.