Literature in international business and finance share the belief that country level institutions affect the decisions of corporations. In the second essay, I highlight the other side of the picture and postulate that MNCs can also modify the national institutions of the host country. I propose and test two mechanisms through which an MNC may affect local culture: the awareness effect and the opportunity effect. The standardization of management knowledge and practice fueled by the expansion of MNCs is what I label the qawareness effectq. The other mechanism is what I label the qopportunity effectq. Even if all firms and managers in a country are aware of best practices, domestic firms may not be able to adopt them. In particular, I show that multinationality weakens the effect of national culture on a firm's capital structure.toooagt; SOLOSa#39;O 1000agt; enzo- toooagt; tHZZa#39;O- toooagt; 999900 1000agt; 66SO 98L000 1000agt; tagt;69900- 1000agt; 962200- 9IES0 32000 toooagt; ZKOVO- 8Z630 99EO0O- 1000agt; fr99900 esoso 9E2000 (0ODagt; 86ZL00aquot; tzoooo- loooagt; 9628*0- 1000agt;anbsp;...
|Title||:||Two Essays on the Role of Multinationality in Corporate Finance|
|Publisher||:||ProQuest - 2006|