Corporate International Activity and Debt Financing
Virginia Polytechnic Institute & State University
David M. Reeb
National University of Singapore; Temple University
June 18, 2001
Journal of International Business Studies, Vol. 33, No. 1, 2002
The literature provides conflicting evidence on the relation between corporate international activity and the cost and level of debt financing. Based on this evidence, we explore the impact of firm international activity on debt financing. Using a market-based sample of U.S. firms, we find significant evidence of a non-monotonic relation between firm international activity and both the cost and level of debt financing. Specifically, we find that, contrary to prior research, firm international activity is associated with a 13% reduction in the cost of debt and a 30% increase in the level of debt financing.
Number of Pages in PDF File: 28
Keywords: Firm Internationalization, Debt Financing
JEL Classification: G3working papers series
Date posted: October 4, 2001 ; Last revised: March 24, 2009
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