• Title of article

    Why do multinational enterprises borrow from local banks?

  • Author/Authors

    Julan Du، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2003
  • Pages
    5
  • From page
    287
  • To page
    291
  • Abstract
    Multinational enterprise subsidiaries typically borrow from multiple banks including local banks. Bank co-financing with local bank participation hardens budget constraint because local banks have strength in seizing firm assets in liquidation. Monitoring by both local and home banks also enhances efficiency.
  • Keywords
    efficiency enhancement , Local bank , Soft budget constraint , Home bank , Legal preferential treatment
  • Journal title
    Economics Letters
  • Serial Year
    2003
  • Journal title
    Economics Letters
  • Record number

    435117