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Capital structure effects of international expansion

  • Joliet, Robert
  • Muller, Aline

This study investigates and qualifies the impact of internationalization on the capital structure of a firm. Previous studies have associated firm internationalization with foreign sales or foreign assets. However, an increase in sales volume generated abroad does not necessarily mean that a firm has actually invested in a new foreign country. This study examines non-financial firms included in the main developed stock indexes that report a new geographical area of operation. It reveals that, at less advanced levels of internationalization, growth in foreign volumes and new geographic expansion lead to differential decision-making in capital structure choices.

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File URL: http://www.sciencedirect.com/science/article/pii/S1042444X13000340
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Article provided by Elsevier in its journal Journal of Multinational Financial Management.

Volume (Year): 23 (2013)
Issue (Month): 5 ()
Pages: 375-393

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Handle: RePEc:eee:mulfin:v:23:y:2013:i:5:p:375-393
DOI: 10.1016/j.mulfin.2013.08.002
Contact details of provider: Web page: http://www.elsevier.com/locate/mulfin

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