debt or external debt from the analysis. We are the first to model the companies’ choice between internal and external debt … shifting and show that it is optimal for them to use both types of debt to save taxes. Using a large panel of German … multinationals, we find strong empirical support for our model. The estimated coefficients suggest that internal and external debt …

companies’ choice between internal and external debt shifting, and show that it is optimal to use both types of debt in order to … coefficients suggest that internal and external debt shifting are of about equal relevance. …

trade-off model, which looks at a MNC’s financial strategy and in particular debt shifting from low-tax to high …

traditional debt bias; and (ii) cross-country corporate tax differences affect a subsidiary’s leverage through international debt … shifting. Using a novel data set for 756 commercial bank subsidiaries of 91 largest multinational banks in the world, we find …

introduced a trade-off model, which looks at a MNC’s financial strategy and in particular debt shifting from low-tax to high …-tax jurisdictions. By letting the MNC choose both leverage and the debt shifting percentage, we depart from the relevant literature …