Capital Structure Choice of the Foreign Affiliates of Japanese Multinational Firms: Characteristics and Problems

Yasuhiro Yonezawa, Hiroshi Yamaguchi, Takeshi Yamamoto and Tomonari Nambu
Additional contact information
Yasuhiro Yonezawa: Waseda University, Komazawa University, Yokohama National University, METI

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: In this paper, we compare and analyze capital structure strategies of foreign affiliates among Japanese and U.S. multinational firms in terms of efficiency of the internal capital markets. A hypothesis is that foreign affiliates of multinational firms rely more on external borrowing in well developed capital markets, and on internal borrowing otherwise. Despite the limitation with respect to the data, our research revealed that Japanese multinationals allocate the fund efficiently by utilizing internal capital markets to the same extent as U.S. counterpart do. However, they heavily rely on financing from their parent companies and Japanese banks, and diversification of the source of fund seems to be insufficient.

Date: 2006-08
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.eaber.org/node/21894 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894 [301 Moved Permanently]--> https://www.eaber.org/node/21894)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eab:microe:21894

Access Statistics for this paper

More papers in Microeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().