期刊名称：International Research Journal of Finance and Economics
印刷版ISSN：1450-2887
电子版ISSN：1450-2887
出版年度：2019
期号：171
页码：78-85
出版社：European Journals Inc.
摘要：This research mainly investigates that whether a good investment opportunity can reduce the cost of equity capital for multinational corporations. We use the sample of global corporations across over 21 countries from the period 2002 to 2014. The results indicates that the cost of equity capital may be increased for multinational corporations when geographic diversification strategy is adopted; however, the cost of equity will be decreased once the good investment opportunity arrives, that is, the corporations will have greater competitive advantages in the near future and then lower the cost of equity capital. The findings demonstrate that the benefits of good investment opportunity outweigh the losses of geographic diversification and then improve the cost of equity capital for multinational corporations.
关键词：Investment Opportunity Set; Geographic Diversification; Cost of Equity Capital.
