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Financing Pattern Of Multinational Enterprises In A Developing Country - The Sri Lankan Experience, H. Wijewardena

Faculty of Business - Accounting & Finance Working Papers

Multinational enterprises (MNEs) have played a vital role in the economies of developing countries. However, empirical studies on some crucial aspects of MNE involvement in these economies appear to be inadequate. One such aspect is their financing pattern. This paper attempts to shed some light on this aspect through an analysis of balance sheet data of a sample of MNE affiliates operating in the manufacturing sector of Sri Lanka. The findings do not support the generally held view that MNEs gear themselves more highly than local firms and that they make use of a greater degree of domestic commercial bank …