Page 57 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0649%u0644 %u062d%u0642 %u0627%u0645%u0644%u0624%u0644%u0641 57 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629Determining the Capital Structure of International Companies:There are three different methods for determining the financial structure of the subsidiary of the international parent company:1. To align with the parent company's capital structure standards.2. To align with the local standards of the country in which the subsidiary operates.3. To diversify according to available opportunities to reduce taxes, reduce financing costs and risks, and take advantage of differences between different markets.4. In addition to the above, political risks must also be considered when selecting the financial structure of subsidiaries.The overall capital structure of an international company is essentially a combination of the capital structures of the parent company and its subsidiaries. The decision to select a capital structure includes choosing debt financing versus equity financing. This decision isinfluenced by firm-specific and host-country characteristics.- Firm-specific characteristics:- Stability of cash floInternational firms with more stable cash flows can handle more debt.- Credit risk:International firms with lower credit risk have greater access to credit.- Retained earnings:Profitable international firms with lower growth can finance most of theirinvestments with retained earnings (ownership).- Host-country characteristics:- Strength of host currency: International firms tend to borrow in the host country's currency if they expect the host country's currency to weaken, to reduce their exposure to exchange rate risk.- Host-country risk: If the host government is likely to block funds or confiscate assets, the subsidiary may prefer debt financing.- Host-country tax laws: International firms may use more local debt financing if local tax rates are higher than those of the home country.