Title of article :
Why do multinational enterprises borrow from local banks?
Author/Authors :
Julan Du، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2003
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
Journal title :
Economics Letters