|Title||The Impact of Internationalization on Zero Leverage: Evidence from the UK|
|Authors||Chatzivgeri, E., Dontis-Charitos, P. and Sivaprasad, S.|
Despite the increasing attention on the role of internationalization in firms’ capital structure decisions, and the increasing adoption of zero leverage policies by multinationals, no study attempts to explain the effect of multi-nationality on the zero leverage decision. This study explores the relationship between the level of internationalization and zero leverage using a large panel of UK companies, while controlling for various company-related factors. We find strong evidence that multi-nationality affects the propensity of firms to have zero leverage and that this decision is affected by industry specificities.
|Keywords||Leverage; Zero leverage; Capital structure; Multinational firms; Industry effects; Financial constraints;|
|Conference||British Accounting and Finance Association Annual Conference 2016|
|Accepted author manuscript||Zero Leverage MNC 20160125.pdf|