IDEAS home Printed from https://ideas.repec.org/a/cup/jfinqa/v14y1979i03p455-480_00.html
   My bibliography  Save this article

International Capital Market Equilibrium and the Multinational Firm Financing and Investment Policies

Author

Listed:
  • Senbet, Lemma W.

Abstract

The purpose of this paper is to develop the financing and investment policies for the multinational firm in the framework of international capital market equilibrium. The analysis incorporates foreign exchange rate fluctuations, differential international interest rates, and differential international taxes. The current valuation theories do not contain realistic treatment of these characteristics of the international financial environment. Therefore, the existing financial theory has to be amply modified if it has to accommodate multinational corporations. Nonetheless, the few notable works in contemporary financial economics, which seek to extend the theory into the international setting, are subject to significant limitations.

Suggested Citation

  • Senbet, Lemma W., 1979. "International Capital Market Equilibrium and the Multinational Firm Financing and Investment Policies," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 14(3), pages 455-480, September.
    • Handle: RePEc:cup:jfinqa:v:14:y:1979:i:03:p:455-480_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022109000005433/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gamal Atallah & Yang Zhou, 2017. "Performance of Cross-Border Acquisitions: Evidence from Canadian Firms Acquired by Emerging Market Firms," Working Papers 1710E, University of Ottawa, Department of Economics.
    2. Omrane Guedhami & April Knill & William L. Megginson & Lemma W. Senbet, 2022. "The dark side of globalization: Evidence from the impact of COVID-19 on multinational companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1603-1640, October.
    3. Singh, Kuljot & Hodder, James E., 2000. "Multinational capital structure and financial flexibility," Journal of International Money and Finance, Elsevier, vol. 19(6), pages 853-884, December.
    4. Andreas Schüler, 2021. "Cross-border DCF valuation: discounting cash flows in foreign currency," Journal of Business Economics, Springer, vol. 91(5), pages 617-654, July.
    5. George D. Cashman & David M. Harrison & Hainan Sheng, 2015. "Political Risk and the Cost of Capital in Asia-Pacific Property Markets," International Real Estate Review, Global Social Science Institute, vol. 18(3), pages 331-364.
    6. Singh, Manohar & Davidson, Wallace III & Suchard, Jo-Ann, 2003. "Corporate diversification strategies and capital structure," The Quarterly Review of Economics and Finance, Elsevier, vol. 43(1), pages 147-167.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jfinqa:v:14:y:1979:i:03:p:455-480_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jfq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.