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
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