Degree of Internationalization, Financial Structure and Cost of Capital: Evidence from Emerging Taiwan

Ta-Cheng Chang, John Darcy, Yu-Ting Hou, Yun-Chia Yan


The debt structure of companies in Developing and Emerging Economies (DEEs) is significantly different from that of companies in the developed countries. This study examines the effect of degree of internationalization (DOI) on leverage ratio (LEV) and cost of capital (COC) in DEE setting by using a sample of Taiwan listed companies.  Our results show that DOI has a significant positive impact on short-term debt as well as a significant negative impact on long-term debt. Therefore, it appears that DOI has a substitution effect in DEE companies. In summary, our results indicate that DEE firms do not have the advantage of participating in the international financial market.  

Full Text:




  • There are currently no refbacks.

Copyright (c) 2022 Ta-Cheng Chang, Yun-Chia Yan, Yu-Ting Hou

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting and Finance Research
ISSN 1927-5986 (Print)   ISSN 1927-5994 (Online) Email:

Copyright © Sciedu Press

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.