UM E-Theses Collection (澳門大學電子學位論文庫)

check Full Text

Product market and capital market : evidence from foreign firms listed in the U.S.

English Abstract

With the development of economic globalization, the activities in the product market and the capital market become more and more closely. This phenomenon evokes our interest to explore the effect of the product market on the capital market. Our study investigates foreign incorporated firms listed in the U.S. to explore the effect of the product market on the capital market. In particular, we study the effect of the foreign sales of a firm on the capital structure. First, we examine whether the traditional theories of capital structure is applicable to foreign incorporated firms listed in the U.S. and then test the relationship between the foreign sales of these firms and their capital structure. As a further step, we test whether debt financing capacity has any influence on the effect of foreign sales on capital structure. We find that with higher foreign sales, these firms tend to maintain a relatively lower level of leverage, which will be reduced when they have the advantage in debt financing. Our results highlight the significant impact of product market behavior on the capital structure of these firms, probably because their foreign sales improve market recognition and therefore reduce information asymmetry.

Issue date



Lian, Lu


Faculty of Business Administration


Department of Finance and Business Economics


M. Sc.


Capital market -- United States

Corporations -- United States -- Finance


Qian, Xiao Lin

Files In This Item

Full-text (Intranet only)

1/F Zone C
Library URL