Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and...

A key feature of globalisation is the increasingly important role of Multinational Enterprises (MNEs) as vehicles for Foreign Direct Investment (FDI). Economic Theory recognises that MNEs can benefit from economic growth in developing countries through generating positive externalities...