Journal of International Business Studies, Vol. 33, No. 1, 2002
28 Pages Posted: 4 Oct 2001 Last revised: 21 Apr 2014
Date Written: June 18, 2001
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.
Keywords: Firm Internationalization, Debt Financing
JEL Classification: G3
Suggested Citation: Suggested Citation
Mansi, Sattar and Reeb, David M., Corporate International Activity and Debt Financing (June 18, 2001). Journal of International Business Studies, Vol. 33, No. 1, 2002. Available at SSRN: https://ssrn.com/abstract=285984 or http://dx.doi.org/10.2139/ssrn.285984