In general, non-U.S. companies have much higher debt ratios than do their U.S. counterparts because financial markets are much more developed in the United States than elsewhere and have played a much greater role in corporate financing than has been the case in other countries.

Question

Quizplus · Accepted Answer

This statement is generally true as financial markets and their role in corporate financing vary across countries. The United States has a more developed financial market and has traditionally relied more heavily on borrowing to finance corporate activity than some other countries with less developed financial systems.

In General, Non-U