Investment and capital structure decisions of foreign subsidiary with international debt shifting and exchange rate uncertainty
Investment and capital structure decisions of foreign subsidiary with international debt shifting and exchange rate uncertainty
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DOI：
10.1007/s10203-012-0129-3
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发表时间：
2013-11
影响因子：
1.1
通讯作者：
M. Kijima;Yuan Tian
中科院分区：
文献类型：
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作者：
M. Kijima;Yuan Tian
本文考察了国际债务转移和汇率不确定性对外国子公司投资和资本结构决策的影响。我们发现，债务转移导致更早的投资，更早的违约，更高的杠杆，更大的事前公司价值的外国子公司。当债务转移成本不高时，外资子公司的最优杠杆率随着税率差异的增加而增加。此外，当汇率和外国现金流的不确定性之间的相关性是积极的（消极的，分别），外国投资的进步，汇率的不确定性增加（减少）以及相关性增加。这些结果表明，债务转移和汇率的不确定性对投资和资本结构政策的影响不容忽视，支持现有的实证研究结果。
This paper examines the impact of international debt shifting and exchange rate uncertainty on investment and capital structure decisions of foreign subsidiary. We find that debt shifting induces earlier investment, earlier default, higher leverage, and larger ex ante firm value of foreign subsidiary. When debt shifting is not so costly, the optimal leverage of foreign subsidiary increases as the tax rate differential increases. Moreover, when the correlation between exchange rate and foreign cash flow uncertainties is positive (negative, respectively), foreign investment advances as exchange rate uncertainty increases (decreases) as well as the correlation increases. These results reveal that the impact of debt shifting and exchange rate uncertainty on investment and capital structure policies cannot be ignored, supporting existing empirical findings.