This paper investigates how international regulatory and institutional differences affect lending in the cross-border syndicated loan market. Lending provided through a foreign subsidiary is subject to subsidiary-country regulation and institutional arrangements. Multinational banks' choices...

This paper investigates how international regulatory and institutional differences affect lending in the cross-border syndicated loan market. Lending provided through a foreign subsidiary is subject to subsidiary-country regulation and institutional arrangements. Multinational banks' choices...

The tax benefit of interest deductibility encourages debt financing, but regulatory and market constraints create dependency between bank leverage and asset risk. Using a large international sample of banks in this paper I find that banks located in high-tax countries have higher leverage and...