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Financing MNC Subsidiaries in Central America

Author

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  • Vihang R Errunza

    (McGill University)

Abstract

This articles studies the historical financial sources for MNC activity in Costa Rica, Honduras, and Nicaragua. The evidence suggests that country environment factors have dominated the sourcing policies of MNCs. The most important factors include perceived exchange risk and domestic credit conditions.© 1979 JIBS. Journal of International Business Studies (1979) 10, 75–86

Suggested Citation

  • Vihang R Errunza, 1979. "Financing MNC Subsidiaries in Central America," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 10(2), pages 88-92, June.
    • Handle: RePEc:pal:jintbs:v:10:y:1979:i:2:p:88-92
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    Cited by:

    1. Akbel, Basak & Schnitzer, Monika, 2011. "Creditor rights and debt allocation within multinationals," Journal of Banking & Finance, Elsevier, vol. 35(6), pages 1367-1379, June.
    2. Chowdhry, Bhagwan & Coval, Joshua D., 1998. "Internal financing of multinational subsidiaries: Debt vs. equity1," Journal of Corporate Finance, Elsevier, vol. 4(1), pages 87-106, March.
    3. Aggarwal, Raj & Kyaw, NyoNyo A., 2008. "Internal capital networks as a source of MNC competitive advantage: Evidence from foreign subsidiary capital structure decisions," Research in International Business and Finance, Elsevier, vol. 22(3), pages 409-439, September.

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