Title: CAPITAL STRUCTURING AND FINANCIAL GOVERNANCE IN MULTINATIONAL ENTERPRISES: STRATEGIES FOR RISK MANAGEMENT AND SUSTAINABLE GROWTH
Author: Emil Mirzaliyev
Abstract:

This article investigates how these capital structuring decisions interact with varying tax regimes, currency exposures, and regulatory environments. The goal is to develop a practical framework for financial executives confronting complex global investment challenges. The methodological approach combines a qualitative review of academic literature and international standards—such as those from the OECD, IFC, and EBRD—with detailed case studies. These cases, including Holcim’s €300+ million cement plant modernization in Azerbaijan and McDermott’s Caspian subsea development, offer concrete examples of FX-hedging strategies, governance-driven financing, and contractual risk allocation in practice. The novelty lies in the shift in perspective: governance and ESG performance should be treated not as compliance burdens but as active financial tools. When deployed strategically, they demonstrably lower capital costs, build investor trust, and open doors to sustainability-linked financing. Evidence shows multinationals building resilience through specific tactics: FX-neutral debt structures to manage currency risk, internal capital markets to bypass local constraints, and governance reforms that lower borrowing costs. For CFOs in infrastructure, energy, and tech, these are not just tools—they are essential for long-term viability

Keywords: Multinational Enterprises (MNEs), Capital Structure, Financial Governance, Risk Management, Foreign Exchange Hedging, Internal Capital Markets, Sustainable Growth, ESG Integration, Infrastructure Finance, Cross-border Investment
DOI: https://doi.org/10.38193/IJRCMS.2025.7608
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Date of Publication: 11-11-2025
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Published Vol & Issue: Volume 7 Issue 6 Nov-Dec 2025