 International knowledge transfers and capital structure of multinational affiliates: Evidence from expatriate managers as the transfer agentsYoungho Kang, Ryoonhee Kim and Unjung Whang Journal of Multinational Financial Management, 2023, vol. 68, issue C Abstract: This study investigates how knowledge transfers within multinational corporations affect the financing decisions of foreign affiliates using a unique dataset on Korean multinationals and their foreign affiliates’ employment structure. We document that affiliates with more expatriate managers tend to maintain lower financial leverage, suggesting that the greater number of expatriate managers facilitate knowledge transfer and increase risk of affiliates. We further show that the negative relation between expatriate managers on affiliate leverage is more pronounced when parents or affiliates own greater intangible assets and host countries have fewer knowledge assets in place. The instrumental variable estimation also confirms the negative relation. Keywords: Multinational corporations; Knowledge transfer; Intangible assets; Capital structure; Technology transfer (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:68:y:2023:i:c:s1042444x23000208 DOI: 10.1016/j.mulfin.2023.100801 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.