Foreign Project Financing in Segmented Capital Markets: Equity versus Debt
基于各国市场资本结构无关的前提，发现分割的国际资本市场中，最优国际资本结构由A国股权和B国债务组成，且风险外国债务能提升股东财富。
Starting with the premise of capital structure irrelevance in each national market, the study arrives at an optimal international capital structure comprised of country A equity and country B debt in segmented international capital markets. It is also shown in such a market that risky foreign debt can enhance shareholder wealth beyond that of default-free debt. Empirical predictions are made about types of firms that are prone to issue foreign debt/equity.