Decisive Factors in Company Financial Internationalization: An Empirical Study

Posted: 1 Dec 2009

See all articles by Sara Urionabarrenetxea

Sara Urionabarrenetxea

University of the Basque Country

Juan Antonio Azkunaga

University of Coruña - Facultad de Ciencias Economicas y Empresariales

Arturo Rodriguez

affiliation not provided to SSRN

Date Written: November, 30 2009

Abstract

This paper seeks to identify factors potentially conditioning firms' financial internationalization. Companies often internationalize their financial areas as part of their larger internationalization strategy. In other words, such initiative is associated with the internationalization of non-financial business areas such as supplies, production or commercialization. However, the move to financial internationalization may also obey a specific strategy designed to take advantage of the opportunities offered by increasingly global financial milieus and markets. In this latter case, certain business characteristics such as size or the specific sector the company works in may condition this decision. Then again, of course, it may respond to a combination of the two, in which case all the factors mentioned are likely to exercise some influence. To test these propositions, we analyzed a sample of 461 firms located in the Basque Country (Northern Spain), using, among others, Mann-Whitney and Kruskal-Wallis tests and logit analysis. In general, the results provide support for both motives for financial internationalization.

Keywords: International Financial Integration; financial globalization; Small-and-Medium-Sized Enterprises (SME); Financial Internationalization; Logit Analysis

JEL Classification: F30

Suggested Citation

Urionabarrenetxea, Sara and Azkunaga, Juan Antonio and Rodriguez, Arturo, Decisive Factors in Company Financial Internationalization: An Empirical Study (November, 30 2009). Available at SSRN: https://ssrn.com/abstract=1515813

Sara Urionabarrenetxea (Contact Author)

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Juan Antonio Azkunaga

University of Coruña - Facultad de Ciencias Economicas y Empresariales ( email )

Facultad de Economía y Empresa
Campus de Elviña s/n
A Coruña, A Coruña 15071
Spain

Arturo Rodriguez

affiliation not provided to SSRN ( email )

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