Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 1, 2021 erstellt
Beschreibung:
Using detailed U.S. data, we find that host-country financial market development attracts more subsidiary operations of multinational corporations (MNCs). The roles of credit and stock markets are distinct. Credit markets are a robust driver of the documented effect, while stock markets play a diminished and sometimes insignificant role. Consistent with these findings, we then show MNCs that operate subsidiaries in countries with more developed credit markets have higher firm-level investment, an effect that is more pronounced for firms relying on external financing sources. Overall, our results are consistent with a "credit channel", whereby developed credit markets attract MNC operations and enhance firm-level investment by improving firms’ access to external finance