A subsidiary failure may deteriorate the bank holding company's (BHC) financial conditions. BHCs' managers possess better knowledge than market investors concerning the likelihood of subsidiary failure, which gives rise to information asymmetry. We examine the effects of this information...

This study investigates how knowledge transfers within multinational corporations affect financing decisions of foreign subsidiaries using a unique dataset on Korean multinationals and their foreign subsidiaries’ employment structure. We document that subsidiaries with more expatriate managers...