Most empirical studies that study the cost of capital of multinational corporations relative to similar domestic corporations find that the risks of cross-border operations result in a higher cost of capital for the multinational corporation.

Question

Quizplus · Accepted Answer

It depends on the nature of the risks, especially on whether they are diversifiable. Indeed, most studies find lower capital costs for multinational corporations.

Most Empirical Studies That Study the Cost of Capital of Multinational