Theory and empirical evidence indicate that the capital structures of multinational companies

Question

Quizplus · Accepted Answer

Theory and empirical evidence suggest that multinational companies' capital structures not only differ from domestic firms but also differ based upon the country in which they are domiciled. The capital structures of multinational companies are influenced by several factors such as taxes, regulations, and market conditions in their home country and host countries. These factors vary across countries, leading to differences in capital structures. Therefore, option C is the correct choice. Options A, B, and D are incorrect as they are either too broad or do not take into account the influence of domicile country on multinational firms' capital structures.

Theory and Empirical Evidence Indicate That the Capital Structures of Multinational