Authors
Sattar A Mansi, David M Reeb
Publication date
2002/3/1
Journal
Journal of international business studies
Volume
33
Pages
129-147
Publisher
Palgrave Macmillan UK
Description
The literature provides conflicting evidence on the relation between corporate international activity and the cost and level of debt financing. Based on this evidence, we explore the impact of firm internationalization on debt financing. Using a market based sample of U.S. firms, we find significant evidence of a non monotonic relation between firm international activity and both the cost and level of debt financing. Specifically, we find that, contrary to prior research, firm international activity is, on average, associated with a 13% reduction in the cost of debt financing and a 30% increase in firm leverage.
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Scholar articles
SA Mansi, DM Reeb - Journal of international business studies, 2002