Determinants on capital structure of multinational companies

Capital structure is the approach followed by a company to finance its long term operations and growth through debt and equity. Debt is the amount of money owed by the borrower for funds and equity represents the difference among the value of assets and liabilities. Capital structure is a measure adopted to evaluate the financial strength of a firm. The capital structure decision is one of the most important decisions made by financial management. Multinational corporations control considerable assets and some multinationals control more assets than others. Decisions about capital structure may have important implications with regard to shareholder wealth effects. This paper examines the determinants on Capital Structure of Multinational Companies during the period from 2008 to 2017. The study finds that the significant capital structure determinants are business risk and Non Debt Shield Tax. Successful firms need funds in every stage of expansion, including foreign expansion. This study aims to examine the Determinants on Capital Structure of Multinational Sample Firms. The regression result concludes that the significant impact of the determinants of the selected variables on capital structure of multinational companies.