Both theory and empirical evidence indicate that the capital structures of MNCs are no different from those of purely domestic firms.

Question

Quizplus · Accepted Answer

While theory suggests that MNCs may benefit from greater access to international capital markets and have more options for financing, empirical studies have generally found little difference in capital structures between MNCs and domestic firms. However, there are some exceptions and nuances to this general finding, such as differences in the use of internal financing and the impact of currency risk.

Both Theory and Empirical Evidence Indicate That the Capital Structures