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Fahn, Matthias; Merlo, Valeria; Wamser, Georg - CESifo - 2014

firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and … popular among employees. We demonstrate that such financing behavior may be driven by implicit arrangements made between a … firm and its managers/employees. Equity financing generally strengthens a firm’s credibility to honor implicit promises …

Persistent link: https://www.econbiz.de/10010877665

Financial Frictions and Foreign Direct Investment: Theory and Evidence from Japanese Microdata

Raff, Horst; Ryan, Michael; Stähler, Frank - CESifo - 2015

We use Japanese microdata to examine how financial market frictions affect foreign direct investment (FDI). The Japanese land price bubble and banking trouble in the late 1980s and early 1990s serve as a quasi natural experiment to identify two possible transmission channels from financial...

Persistent link: https://www.econbiz.de/10011205374

World Market Access of Emerging-Market Firms: The Role of Foreign Ownership and Access to External Finance

Raff, Horst; Trofimenko, Natalia - CESifo - 2013

This paper uses micro-data from the World Bank Investment Climate Surveys 2002-2006 to investigate how foreign ownership and access to external finance affect the likelihood of manufacturers in emerging markets to export and/or import. Applying propensity score matching to control for...

Persistent link: https://www.econbiz.de/10010681216

Preemption, Start-Up Decisions and the Firms’ Capital Structure

Moretto, Michele; Panteghini, Paolo - CESifo - 2007

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.

Persistent link: https://www.econbiz.de/10005405785

Firms’ Financial Choices and Thin Capitalization Rules under Corporate Tax Competition

Haufler, Andreas; Runkel, Marco - CESifo - 2008

Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates...

Persistent link: https://www.econbiz.de/10005406343

Corporate Debt, Hybrid Securities and the Effective Tax Rate

Panteghini, Paolo - CESifo - 2008

In this article we use contingent-claim analysis to calculate the effective tax rate (ETR) under corporate debt finance. In particular, we deal with both pure debt and two of the most well-known hybrid securities, i.e., convertible, and reverse convertible bonds. We show that: 1) effective...

Persistent link: https://www.econbiz.de/10005406347

Capital Structure and Regulation in U.S. Local Telephony: An Exploratory Econometric Study

Resende, Marcelo - CESifo - 2009

The paper aims at empirically investigating the relationship between regulation and the capital structure of the regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased as a response to previous physical capital investment...

Persistent link: https://www.econbiz.de/10004979410

Corporate Taxation and Financial Strategies Under Asymmetric Information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - CESifo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010764291

Thin Capitalization Rules and Multinational Firm Capital Structure

Blouin, Jennifer; Huizinga, Harry; Laeven, Luc; … - CESifo - 2014

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...

Persistent link: https://www.econbiz.de/10010877952

Microeconometric Evidence of Financing Frictions and Innovative Activity

Tiwari, Amaresh K.; Mohnen, Pierre; Palm, Franz; Loeff, … - CESifo - 2014

Using Dutch data we empirically investigate how financing and innovation vary across firm characteristics. We find that … when firms face financial constraints, debt financing and innovation choices are not independent of firm characteristics … innovate and the change in the propensity to innovate no longer varies with firm characteristics. We find that financing …

Persistent link: https://www.econbiz.de/10010743448