Financial structure and bank relationships of Italian multinational firms

Raffaello Bronzini (), Alessio D’Ignazio () and Davide Revelli ()
Additional contact information
Alessio D’Ignazio: Bank of Italy, Directorate General for Economics, Statistics and Research
Davide Revelli: Bank of Italy, Genoa Branch
Authors registered in the RePEc Author Service: Alessio D'Ignazio

No 1326, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper examines the financial structure and the bank relationships of Italian multinational firms. We show that multinationals are on average more leveraged than non-internationalized firms. Moreover, they have a larger share of financial and bank debt out of total debt, maintain more bank relationships, are less dependent on the main bank for the firm, and benefit from lower interest rates. Lastly, multinationals take greater advantage of intra-group financing than non-internationalized firms. These results are robust to estimation methods that tackle the potential endogeneity of the choice to go international, such as matching and instrumental variables estimation.

Keywords: multinational companies; foreign direct investment; financial structure; bank-firm relationships (search for similar items in EconPapers)
JEL-codes: D22 F21 F23 G30 L25 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-cfn, nep-eur and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/temi-dis ... 326/en_tema_1326.pdf (application/pdf)

Related works:
Journal Article: Financial structure and bank relationships of Italian multinational firms (2022)
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:bdi:wptemi:td_1326_21

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().