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Large and Influential : Firm Size and Governments' Corporate Tax Rate Choice

Riedel, Nadine - 2018

Theory suggests that large firms are more likely to engage in lobbying behaviour and are geographically more mobile …

Persistent link: https://www.econbiz.de/10012921204

Search Costs and Corporate Income Tax Competition

Konrad, Kai A. - 2010

This paper studies corporate tax competition if it is costly to learn some of the elements that determine the effective tax burden. Search cost may, but need not, eliminate the tax competition pressure. The outcome depends on the boundaries of tax rate and tax base choices. Search cost can...

Persistent link: https://www.econbiz.de/10013136588

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

Multinational Capital Structure and Tax Competition

Wrede, Matthias - 2010

This paper analyzes tax competition when welfare maximizing jurisdictions levy source-based corporate taxes and multinational enterprises choose tax-efficient capital-to-debt ratios. Under separate accounting, multinationals shift debt from low-tax to high-tax countries. The Nash equilibrium of...

Persistent link: https://www.econbiz.de/10013143833

The Impact of Thin Capitalization Rules on the Location of Multinational Firms' Foreign Affiliates

Merlo, Valeria - 2015

This paper examines how restrictions on the tax-deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so-called thin-capitalization rules (TCRs) to prevent MNCs from shifting tax base to countries with lower tax rates. As of...

Persistent link: https://www.econbiz.de/10013018273

Optimal Debt Bias in Corporate Income Taxation

Simon, Jenny - 2015

I present a rationale for a government to discriminate between debt and equity financing when taxing corporate income. For risk-averse entrepreneurs, equity generates more surplus than debt, because it provides financing and insurance. A government seeking to extract surplus from entrepreneurs...

Persistent link: https://www.econbiz.de/10013011801

Thin Capitalization Rules and Multinational Firm Capital Structure

Blouin, Jennifer L. - 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/10013055986

Taxes Do Affect Corporate Financing Decisions : The Case of Belgian ACE

Princen, Savina - 2012

In this paper, I use difference-in-differences regressions to measure how the debt tax shield affects the capital structure of a company. By comparing the financial leverage of treatment and control companies before and after the introduction of an equity tax shield, I infer the impact of the...

Persistent link: https://www.econbiz.de/10013111822

Taxation and Capital Structure Choice - Evidence from a Panel of German Multinationals

Büttner, Thiess; Overesch, Michael; Schreiber, Ulrich; … - 2021

This paper analyzes the impact of taxes and lending conditions on the financial structure of multinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates of German multinationals in 26 countries in the period from 1996 until 2003. In accordance with the...

Persistent link: https://www.econbiz.de/10013317343

Do Dividend Taxes Affect Corporate Investment

Alstadsæter, Annette - 2014

data and triple-difference estimators, we find that this dividend tax cut affects allocation of corporate investment. Cash …-constrained firms increase investment after the dividend tax cut relative to cash-rich firms. Reallocation is stronger among closely … and by higher dividends in cash-rich firms after the tax cut. The heterogeneous investment responses imply that the …

Persistent link: https://www.econbiz.de/10013047347