How does internationalization affect capital raising decisions? Evidence from UK firms

Edward Jones*, Nana Abena Kwansa, Hao Li

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)
46 Downloads (Pure)


Comparisons of financing decisions of domestic and multinational firms provide contrasting results. Some indicate that multinationals operate at higher levels of debt, whilst others suggest domestic firms use more leverage. We test whether managers of multinational firms increase the use of debt capital or prefer theoretically more expensive equity financing as internationalization increases. We find that multinational companies use similar or lower leverage than domestic firms and are more likely to raise new equity capital than new debt. Our evidence indicates that internationalization leads to the use of more expensive capital from the domestic market at a cost to shareholders. International markets are used sparingly.

Original languageEnglish
Article number100652
JournalJournal of Multinational Financial Management
Issue number2
Early online date24 Sept 2020
Publication statusPublished - Dec 2020


  • Capital raising
  • Capital structure
  • Internationalization
  • Multinational

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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