Abstract
This paper reviews recent developments in models dealing with capital structure and cost of capital for the multinational firm. A number of issues which bear upon the financing decisions of the multinational corporation are addressed, and related to underlying theoretical and empirical questions with regard to the degree of segmentation or integration of international money and capital markets and the efficiency of the foreign exchange market. Data problems, areas of conflict, and topics for future research are identified. The paper concludes with a summary of financial policy prescribed for the firm by the present state of knowledge.
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*Dr. Marjorie Stanley is Associate Professor of Finance at Texas Christian University. She has published a number of articles in leading professional and academic journals; her recent research has focused on the area of international finance.
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Stanley, M. Capital Structure and Cost-of-Capital for the Multinational Firm. J Int Bus Stud 12, 103–120 (1981). https://doi.org/10.1057/palgrave.jibs.8490573
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DOI: https://doi.org/10.1057/palgrave.jibs.8490573