International firms leverage borrowing for growth, domestic firms rely on owners' capital.
The study looked at how borrowing money affects how well companies manage their finances. They studied 102 companies in Nigeria and Ghana from 2012 to 2016. They found that there is a specific relationship between borrowing money and managing cash and working capital. Companies that do business internationally are more likely to borrow money instead of using their own funds. The way companies manage their borrowing and finances can impact their success.