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 …

This paper analyzes the role of Thin-Capitalization rules for capital structure choice and investment decisions of … multinationals. A theoretical analysis shows that the imposition of such rules tends to affect not only the leverage and the level of … investment but also their tax-sensitivity. An empirical investigation of leverage and investment reported for affiliates of …

multinationals, we find strong empirical support for our model. The estimated coefficients suggest that internal and external debt …

In the conventional literature related to investment decisions, less attention has been paid to the length of maturity … when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial … investment cost multiplied by real interest rate) for the entire borrowing years but also the total amount of initial investment …

. Further, while during earlier parts of our sample both a slowdown in consumption and investment growth contribute to a … reduction of GDP growth, during later parts, only the investment reaction contributes to the GDP slowdown. A variance … to later parts of the sample, while the corresponding decomposition for investment growth reveals an increase in the role …

model features irreversible investment, no capital markets and fixed and sunk costs to export. Several features of the … distribution of investment rates and export participation patterns observed in firm-level data are closely matched in a calibration …

firms in making their investment decisions.We use a revealed preference approach that relies on the pattern of investment … spending – combined with investment theory – to estimate the discount rates used by managers. The standard story predicts that … firms with high stock prices and good investment opportunities should have discount rates that do not differ systematically …

Investment in network infrastructure can boost long-term economic growth in OECD countries. Moreover, infrastructure … investment can have a positive effect on growth that goes beyond the effect of the capital stock because of economies of scale … between infrastructure and economic growth. Time-series results reveal a positive impact of infrastructure investment on …

encroacher’s valuation of the asset is increasing in the asset owner’s investment. Due to incomplete property rights, the … encroacher and asset owner engage in a contest over the control of the asset after investment has taken place. A standard result … is that the asset owner will underinvest in the asset relative to the first-best level of investment when property rights …

In this paper we offer an analysis of the effects of uncertainty about future tax policy on irreversible investment …. The main message of the paper is that investment is not much affected by the degreee of tax policy uncertainty. This is … that reducing tax policy uncertainty is probably no magic bullet to increase private investment spending …