The Capital Trap: A Comparative Analysis of Financial System Architecture and its Impact on the Emergence of Multinational Enterprises in Small Open Economies

This diploma thesis investigates the "headquarters void" in the Czech Republic - the persistent absence of indigenous multinational enterprises despite successful macroeconomic convergence. To explain this phenomenon, the research introduces the "Capital Trap" hypothesis, which posits that the architecture of the domestic financial system acts as a structural constraint on independent firm scaling. Building on the Dependent Market Economy framework, the thesis identifies a self-reinforcing, three-pillar mechanism: Bank Conservatism, an Equity Vacuum, and the resulting Exodus of Value. Employing a mixed-methods comparative case study design, the research contrasts the Czech macro-financial environment with patient-capital ecosystems in Sweden, the Netherlands, Denmark, Austria, and South Korea. This is supplemented by qualitative paired firm-level case studies in the automotive (Škoda Auto vs. Volvo Cars) and technology (Avast vs. Spotify) sectors. The findings confirm that the Czech financial architecture systematically lacks the deep equity markets and institutional anchor investors required for independent global scaling, concluding that escaping this sub-optimal equilibrium requires comprehensive, coordinated policy interventions in domestic pension and capital market structures.