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Taxation and the Optimal Constraint on Corporate Debt Finance

Birch Sørensen, Peter - 2014

interest deductibility. This paper sets up a model of corporate finance and investment in a small open economy to quantify the … would arise partly from a fall in the social risks associated with corporate investment, and partly from the cut in the …

Persistent link: https://www.econbiz.de/10013039997

Evaluating the Effects of ACE Systems on Multinational Debt Financing and Investment

Hebous, Shafik - 2015

Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an …, passive investment, and active investment of multinational firms, using high-quality administrative data on virtually all … multinational affiliates. Additionally, an ACE increases intra-group lending and other forms of passive investment but has no …

Persistent link: https://www.econbiz.de/10013021715

Investor Taxation, Firm Heterogeneity and Capital Structure Choice

Haring, Magdalena - 2016

We analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific payout policy on firms' capital structure choice. Our analysis is based on data for 10,983 firms from 13 Central and Eastern European (CEE) countries over the time period 2002-2012. Our results...

Persistent link: https://www.econbiz.de/10012979608

The Tax-Efficient Use of Debt in Multinational Corporations

Møen, Jarle - 2018

theory model using data on the universe of German multinationals. The empirical analysis largely supports our model in that …

Persistent link: https://www.econbiz.de/10012912670

International Debt Shifting : Do Multinationals Shift Internal or External Debt?

Møen, Jarle - 2011

Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting debt from affiliates in low tax countries to affiliates in high tax countries. Previous papers have either omitted internal debt or external debt from the analysis. We are the...

Persistent link: https://www.econbiz.de/10013122255

Capital Structure Choice and Company Taxation : A Meta-Study

Feld, Lars P.; Heckemeyer, Jost H.; Overesch, Michael - 2021

This paper provides a quantitative review of the empirical literature on the tax impact on corporate debt financing. Synthesizing the evidence from 46 previous studies, we find that this impact is substantial. In particular, the tax rate proxy determines the outcome of primary analyses. Measures...

Persistent link: https://www.econbiz.de/10013316029

Profit Shifting by Debt Financing in Europe

Barion, Francesca; Miniaci, Raffaele; Panteghini, Paolo; … - 2021

This article aims at analyzing the link between subsidiaries’ capital structure and taxation in Europe. First we introduce a trade-off model, which studies a MNCs’ financial strategy and shows how debt policy allows multinational groups to shift profits from low-tax to high-tax...

Persistent link: https://www.econbiz.de/10013316229

Debt Financing and Sharp Currency Depreciations : Wholly vs. Partially Owned Multinational Affiliates

Hebous, Shafik; Weichenrieder, Alfons J. - 2021

This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent...

Persistent link: https://www.econbiz.de/10013316273

Credit Booms, Debt Overhang and Secular Stagnation

Illing, Gerhard - 2018

Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit booms? We present a model of persistent aggregate demand shortage based on strong liquidity preferences of households, in which we incorporate financial imperfections to study...

Persistent link: https://www.econbiz.de/10012927578

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

Resende, Marcelo - 2021

as a response to previous physical capital investment with an ultimate goal of inducing higher rates. Theoretical models …) and gross investment (INV) in physical capital. The evidence accruing from a dynamic panel data estimation indicates an … with the notion that the size of the firm's investment project can impose a restriction on the amount of new debt. The …

Persistent link: https://www.econbiz.de/10013316358