Theory and empirical evidence indicate that the capital structures of multinational companies ________.
A) are basically the same as those of domestic firms
B) differ, but all multinationals are similar no matter the domicile country
C) not only differ from domestic firms, but also differ based upon the country in which they are domiciled
D) differ only because of their operating structure and the country in which they are domiciled has no impact on capital structure

Question

Quizplus · Accepted Answer

Both theory and empirical evidence suggest that the capital structures of multinational companies differ from those of domestic firms, and these capital structures also vary based on the country in which they are domiciled. Factors such as tax laws, regulatory environments, and investor preferences can all impact the capital structure of a multinational company, making it difficult to generalize across all countries and firms. Therefore, option C is the most accurate choice.

Theory and Empirical Evidence Indicate That the Capital Structures of Multinational