The influence of crises on the financial position of multinationals in emerging markets
Tipo
Artigo
Data de publicação
2023
Periódico
Investment Analysts Journal
Citações (Scopus)
0
Autores
da Fonseca P.V.
Juca M.N.
da Torre Vieito J.P.
Juca M.N.
da Torre Vieito J.P.
Orientador
Título da Revista
ISSN da Revista
Título de Volume
Membros da banca
Programa
Resumo
© 2023 Investment Analysts Society of South Africa.This investigation is one of the first to analyse the relationships between leverage and bankruptcy costs, interest expenses, tax benefits and firm value, in multinational and domestic companies, during periods of crisis and financial stability. The analysed data are related to the Organisation for Economic Co-operation and Development’s (OECD) most important emerging markets (Brazil, China, India, Indonesia, and South Africa) based on a sample of 15,632 observations from public companies for the period 2004–2019 (including the 2008 crisis). The results suggest that multinational companies incur lower bankruptcy costs than domestic ones. Meanwhile, they also become more valuable. Another difference relates to multinationals’ ability to raise their leverage levels, even in times of crises, in contrast to domestic companies. Multinational companies also exhibit higher financial negotiation power and may obtain lower interest rates than domestic companies. These findings contribute to the understanding of the financial dynamics demonstrated by multinationals and domestic companies in emerging economies during periods of crisis and stability.