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Analysis on Capital Structure Determinants of Chinese Transnational Corporation

Author: GuDaZhi
Tutor: SunZuo
School: Jilin University
Course: Accounting
Keywords: Multinational Capital Structure Debt Financing
CLC: F275
Type: Master's thesis
Year: 2005
Downloads: 482
Quote: 2
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Abstract


Growing degree of economic globalization today, China's foreign direct investment increasing number of multinational capital structure for the research , but it is particularly important . This paper begins with the theory of multinational capital structure perspective clarifies the general factors , introduced a monopoly advantage theory , product life cycle theory, internalization theory , the international financial market theory and eclectic theory implied in the theory of capital structure . Secondly, in the draw and draw domestic and foreign multinational capital structure on the basis of research results , the use of empirical research methods to multinational companies in China as the research object , select the Chinese mainland multinationals and non- multinationals sample data for paired samples t test, the test results showed that: MNCs than non- MNCs had significantly higher levels of debt . Again , we use standard research methods, systems, discusses the status of Chinese multinational capital structure , and the structure of transnational capital, the factors affecting the in-depth analysis . The results show that , as multinational companies with monopolistic advantages , internalization advantages and other advantages, making multinationals have lower expected risk of bankruptcy , strong international tax avoidance skills, so come multinational than domestic firms have significantly higher debt level argument.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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