Both theory and empirical evidence indicate that the capital structures of MNCs are not different from those of purely domestic firms.

Question

Quizplus · Accepted Answer

While there is some debate among researchers, many studies have found that MNCs do have different capital structures than purely domestic firms. This is due to a variety of factors, including differences in market access, sources of financing, and risk management strategies.

Both Theory and Empirical Evidence Indicate That the Capital Structures