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Full-Text Articles in Business
Do The Specific Countries In Which A Multinational Corporation Operates Affect Its Private Loan Contracts?, Brandon Ater, Bowe Hansen
Do The Specific Countries In Which A Multinational Corporation Operates Affect Its Private Loan Contracts?, Brandon Ater, Bowe Hansen
School of Accountancy Faculty Publications and Presentations
Previous research has shown that higher levels of firm globalization lead to a lower cost of private debt. However, this research generally treats globalization as a homogeneous attribute ignoring the specific countries in which a multinational corporation (MNC) operates. Using a sample of U.S. MNCs from 1999 through 2017, we relax this assumption and find that while the results from prior research hold with regards to the level of an MNC’s operations in segments reported at the regional or continent-wide level, the level of an MNC’s operations in countries with low institutional quality is associated with a higher cost of …