Title: Affiliates’ Bank Debt Policy: Does Parent Firm Nationality Matter?
Authors: Locorotondo, Rosy ×
Dewaelheyns, Nico #
Van Hulle, Cynthia #
Issue Date: 2015
Series Title: Journal of Business Finance & Accounting vol:42 issue:5-6 pages:747-776
Abstract: This paper examines whether and how bank debt is affected by foreign group affiliation. Ceteris paribus, affiliates of foreign business groups only use about half as much bank debt as compared to affiliates of domestic groups. Further, the results indicate that geographical and cultural distance between parent and affiliate countries raise barriers when accessing bank financing. The bank debt usage decreases even further, if affiliates and parent firms depend on different legal systems or the degree of legal enforcement in the parent firm’s country is low.
ISSN: 0306-686X
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Financial Management, Campus Carolus Antwerp
Research Center Finance, Leuven
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

Files in This Item:
File Description Status SizeFormat
Affiliates bank debt policy - does parent nationality matter.pdf Published 335KbAdobe PDFView/Open


All items in Lirias are protected by copyright, with all rights reserved.

© Web of science