Financial components of FDI and choice of capital structure: an analysis for 30 OECD countries

[ X ]

Tarih

2017

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Routledge Journals, Taylor & Francis Ltd

Erişim Hakkı

info:eu-repo/semantics/closedAccess

Özet

Even though the choice of capital structure depends on the three different financial components of foreign direct investment (FDI), previous research has regarded FDI as unidimensional rather than multidimensional. This study addresses new findings in the FDI area and investigates the relevant determinants of capital structure in 30 OECD countries from 2006 to 2014 within the framework of a simultaneous equation model. Our primary findings reveal that each component has its own deterministic features driven by relevant policy variables and risks in the market. While an increase or decrease in equity capital shows the ability of the host country to attract new investments, the subsequent components are mostly used to adjust the equity capital investment exposure.

Açıklama

Anahtar Kelimeler

Foreign direct investments, FDI components, dynamic panel data, reinvested earnings, intracompany loans, equity capitals

Kaynak

Applied Economics

WoS Q Değeri

Q2

Scopus Q Değeri

Q2

Cilt

49

Sayı

19

Künye