Quotation Lindner, Thomas, Klein, Florian, Schmidt, Stefan. 2018. The effect of internationalization on firm capital structure: A meta-analysis and exploration of institutional contingencies. International Business Review, 27, (6), 1238-1249.


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Abstract

Despite extensive research on the relationship between internationalization and firm capital structure, findings in this research area remain inconclusive. In this paper, we review the literature on the internationalization–capital structure relationship and investigate its direction, effect size, and multiple contingencies through a meta-analysis of 31 studies with a grand total of 223,658 firm observations and at least two separate samples each. Our cumulative evidence indicates lower debt ratios of multinational corporations compared to domestic corporations, in line with arguments of increased risk and agency costs in international operations. We extend our analysis to institutional characteristics in firms' home countries and find that much of the existing variation in study findings can be explained using theory arguments on firm risk in internationalization. We contribute to an integration of international business and finance literature and point to directions for future research on determinants of the internationalization–capital structure relationship and its multiple contingencies.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Business Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new STRAT-B, WH-B
Language English
Title The effect of internationalization on firm capital structure: A meta-analysis and exploration of institutional contingencies
Volume 27
Number 6
Year 2018
Page from 1238
Page to 1249
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0969593117303657
DOI https://doi.org/10.1016/j.ibusrev.2018.05.005
Open Access N

Associations

People
Lindner, Thomas (Details)
Klein, Florian (Former researcher)
External
Schmidt, Stefan (Unicredit SpA, Austria)
Organization
International Business (Details)
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