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Content archived on 2024-05-27

FDI and DETERMINANTS OF CAPITAL STRUCTURE IN NEW MEMBER STATES OF EU

Objective

The objective of this proposal is to measure the effect of Foreign Direct Investment (FDI) on firm’s capital structure determinants in the post-liberalization era in the new twelve member states of the EU. The assumptions of this proposal are as follows: (i) firm’s that have attracted FDI in the post-liberalization period have had access to international capital markets, (ii) optimized their capital structure mix faster and (iii) had overcome liquidity constraints better than firms without FDI due to their foreign investors in developed markets. Accordingly, we are proposing to examine the capital structure determinants of firms that have attracted FDI (FDI firms) and that have not (Non-FDI firms), in the post liberalization period for determining structural differences. The findings will reveal not only the differences of capital structure determinants of firms but also if FDI facilitated the integration process between EU-15 and the new member states. To our information this approach has not been studied in the set of emerging markets especially for the new twelve member states of the EU and will enable observing how capital structures take shape once FDI is injected. If findings confirm the given expectations, this study can be used as a risk management tool for a more strategic and efficient allocation of EU funds both to new member states and to candidates states of South Eastern Europe for the purpose of integrating them to EU-15, to European Monetary Union in line with the Stability Pact and even contribute to the newly released Neighborhood policy.

Fields of science (EuroSciVoc)

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Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Topic(s)

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Call for proposal

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FP7-PEOPLE-2007-2-1-IEF
See other projects for this call

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MC-IEF - Intra-European Fellowships (IEF)

Coordinator

CITY ST GEORGES UNIVERSITY OF LONDON
EU contribution
€ 82 597,53
Address
NORTHAMPTON SQUARE
EC1V 0HB LONDON
United Kingdom

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Region
London Inner London — East Haringey and Islington
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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