01861cas a2200265 a 4500 AALejournalIMF002982 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451853018 1018-5941 BD-DhAAL BD-DhAAL Sayek, Selin. Multinational Affiliates and Local Financial Markets / Selin Sayek, Alexander Lehmann, Hyoung Kang. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We use data on the sources of debt finance of U.S. majority-owned foreign affiliates in 53 countries over the period 1983 to 2001 to examine the role of financial market development, and exposure to host country-specific risk on the financing choices of these affiliates. We find that total balance sheets are about four times as large as the cross-border component of foreign direct investment (FDI). The extent of financial leverage through local debt is positively related to host-country corporate tax rates, exchange rate variability, local currency-denominated sales, and financial development. Factors that further the role of local debt reduce that of parent company debt, and through this substitution overall leverage increases. Mode of access: Internet Kang, Hyoung. Lehmann, Alexander. IMF Working Papers; Working Paper ; No. 2004/107 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/107/001.2004.issue-107-en.xml IMF e-Library