Abstract
The theory of corporate international investment is extended to account for the effects of information costs, short sales and taxes on the management decision process. Our results explain how real exchange risk, competition and diversification gains affect corporate international investment decisions in this setting. The model includes clear forward looking explanations of some anomalies in the literature such as the ‘home bias puzzle’ in international finance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
