A number of studies conclude that certain factors unique to each host country can
cause differences in capital structures. These factors include legal, tax, political,
social, and financial aspects, as well as the overall relationship between the public
and private sectors. Owing to these factors, differences have been found not only
among MNCs based in various countries but also among the foreign subsidiaries
of an MNC. However, because no one capital structure is ideal for all MNCs, each
multinational has to consider a set of global and domestic factors when deciding