Empirical studies show that neither mature domestic firms nor MNEs are typically willing to assume the higher agency costs or bankruptcy risk associated with higher MCCs and capital budgets.

Question

Quizplus · Accepted Answer

Empirical studies have shown that both mature domestic firms and MNEs tend to avoid higher agency costs and bankruptcy risks associated with higher MCCs (Marginal Cost of Capital) and capital budgets. Therefore, the statement is true.

Empirical Studies Show That Neither Mature Domestic Firms nor MNEs