International Capital Market Equilibrium and the Multinational Firm Financing and Investment Policies

Lemma W. Senbet

Journal of Financial and Quantitative Analysis, 1979, vol. 14, issue 3, 455-480

Abstract: The purpose of this paper is to develop the financing and investment policies for the multinational firm in the framework of international capital market equilibrium. The analysis incorporates foreign exchange rate fluctuations, differential international interest rates, and differential international taxes. The current valuation theories do not contain realistic treatment of these characteristics of the international financial environment. Therefore, the existing financial theory has to be amply modified if it has to accommodate multinational corporations. Nonetheless, the few notable works in contemporary financial economics, which seek to extend the theory into the international setting, are subject to significant limitations.

Date: 1979
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

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:cup:jfinqa:v:14:y:1979:i:03:p:455-480_00

Access Statistics for this article

More articles in Journal of Financial and Quantitative Analysis from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().