Endeudamiento y rentabilidad en empresas multinacionales

Abstract

Multinational enterprises' borrowing requirements in domestic capital markets are generally explained on grounds of caution, i.e. to minimise foreing exchange losses or other risks attached to foreing operations. But in countries where rates of interest are kept relatively low and inflation makes them even lower in real terms, domestic borrowing has another function. It contributes in a very significant way to reducing the cost of indebtedness and to raising the profits foreing firms make on their own capital, as proved through regression analysis.