The influence of internationalization on the capital structure and cost of capital

• Main Authors: HOU, YU-TING, 侯渝婷
• Other Authors: CHANG, DA-CHEN
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/yp6ts2

碩士 === 東吳大學 === 國際經營與貿易學系 === 107 === Under the trend of internationalization, international trade and foreign investment have become the mainstream. In the past, although there are many literatures to study the impact of internationalization on capital structure and costs of capital, but it is still a controversial issue. Aiming at 703 public traded companies in Taiwan from 2013 to 2017 as the research object, this study uses panel data and three stage least squares(3SLS) to explore the influence of internationalization on capital structure and costs of capital. This paper points out there are several problems in the past literature: First, there is no clear distinction between internationalization, diversification; Second, generally measures geographic diversification from the perspective of overseas sales; Third, explain cultural differences directly with geographic diversification. Therefore, this article clearly distinguishes internationalization, geographic diversification, international diversification, and use the perspective of overseas subsidiaries to measure geographic diversification. Also, add cultural distance to explain different investment areas have different risk differences. This study indicate that long and short-term leverage have a competitive role, the higher the degree of internationalization, geographical diversification and international diversification, the more cost of capital will be increased, but the difference is that holding short-term liabilities will increase, long-term liabilities will decrease. When company has a trade or foreign direct investment in a country with long distance from culture, the short-term leverage it holds increases and long-term leverage decreases.