Transnational Corporations

Frequency
3 times a year
ISSN: 
2076-099X (online)
http://dx.doi.org/10.18356/d3e73f33-en
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This journal takes a fresh look at major legal, sectorial, regional and environmental issues facing corporations operating internationally. Released three times a year, it provides in-depth policy-oriented research findings on significant issues relating to the activities of transnational corporations.
Article
 

Overcoming financing constraints to corporate expansion: Evidence from a company in an emerging Islamic market You do not have access to this content

English
 
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    http://oecd.metastore.ingenta.com/content/729df526-en.pdf
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Author(s):
Bruce Hearn, Jenifer Piesse, Roger Strange
31 Dec 2010
Pages:
26
Bibliographic information
No.:
1,
Volume:
18,
Issue:
3
Pages:
1–26
http://dx.doi.org/10.18356/729df526-en

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The sourcing of low-cost finance to facilitate corporate expansion on competitive terms is a major challenge to firms from emerging markets. There are additional constraints in Islamic markets as financial instruments must adhere to sharia law. This paper examines the approach taken by the Sudan Telecommunications Company (Sudatel) to obtain cost effective equity financing using secondary listings on multiple Middle East and North Africa (MENA) stock exchanges. We compare the costs of equity for Sudatel stock on the Sudan and Abu Dhabi Exchanges, and compare these figures with those for Sudatel’s two main regional competitors. Furthermore, we highlight the risk-return trade-off faced by investors in Sudatel stock on both Exchanges, and provide evidence of the potential benefits to investors from the overseas listing.