Gu, Grace; Mooij, Ruud; Poghosyan, Tigran - In: International Tax and Public Finance 22 (2015) 2, pp. 177-200
This paper explores how corporate taxes affect the capital structure of multinational banks. Guided by a theory of optimal capital structure, it tests whether (i) corporate tax rates induce subsidiary banks to raise leverage in light of traditional debt bias; and (ii) cross-country corporate tax...