Country of Origin Effects in Capital Structure Decisions: Evidence from Foreign Direct Investment in China
We investigate the role of investors country of origin in corporate decisions using the leverage decisions of foreign joint ventures in China. By focusing on foreign ventures in China, we are able to hold constant the financing environment, eliminate the effects of formal institutions in the foreign investors home country, and consequently reveal the effects of informal institutions in corporate decisions. We find that country of origin has significant explanatory power in the financial leverage decisions of foreign joint ventures in China. Country-level variation is evident in debt choices and appears to work through choices of firm characteristics, industry affiliation, ownership structure, and region of investment. Country-level effects are partly determined by cultural values including embeddedness, mastery, and uncertainty avoidance.
corporate tax rate country of origin distance embeddedness foreign direct investment leverage long-term debt mastery regional development uncertainty avoidance
Kai Li Dale Griffin Heng Yue Longkai Zhao
Sauder School of Business University of British Columbia 2053 Main Mall,Vancouver,BC V6T 1Z2 Guanghua School of Management Peking University Beijing 100871 P.R.China
国际会议
大连
英文
1-70
2008-07-02（万方平台首次上网日期，不代表论文的发表时间）