Similar Search Results

Fahn, Matthias; Merlo, Valeria; Wamser, Georg - CESifo - 2014

Existing theories of a firm’s optimal capital structure seem to fail in explaining why many healthy and profitable firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and the bankruptcy risk low. This holds in particular for...

Persistent link: https://www.econbiz.de/10010877665

Study on the competitiveness of the European companies and resource efficiency ; final report ; revised version after the stakeholders consultation workshop and including policy re...

ECORYS Research and consulting <Rotterdam> - 2011

Persistent link: https://www.econbiz.de/10009641116

Does Debt Maturity Matter for Investment Decisions?

Nam, Chang Woon; Radulescu, Doina Maria - CESifo - 2004

In the conventional literature related to investment decisions, less attention has been paid to the length of maturity … cost at the end of the borrowing period. In this study, the effects of selecting different maturity years on firms … suggest that (1) ceteris paribus an optimum maturity year appears to exist that maximises the NVP, and (2) the change of …

Persistent link: https://www.econbiz.de/10005181322

Long-Term Interest Rates and Public Debt Maturity

Sakalauskaite, Ieva; Beetsma, Roel; Giuliodori, Massimo - CESifo - 2013

the maturity of the public debt by one year lowers its long-term interest rate by around 20-30 basis points. This effect …

Persistent link: https://www.econbiz.de/10010697222

Thin Capitalization Rules and Multinational Firm Capital Structure

Blouin, Jennifer; Huizinga, Harry; Laeven, Luc; … - CESifo - 2014

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...

Persistent link: https://www.econbiz.de/10010877952

International Debt Shifting: Do Multinationals Shift Internal or External Debt?

Møen, Jarle; Schindler, Dirk; Schjelderup, Guttorm; … - CESifo - 2011

Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting debt from affiliates in low tax countries to affiliates in high tax countries. Previous papers have either omitted internal debt or external debt from the analysis. We are the...

Persistent link: https://www.econbiz.de/10009221552

The Capital Structure of Multinational Companies under Tax Competition

Panteghini, Paolo - CESifo - 2006

This article studies the relationship between debt policies of multinational companies (MNCs) and governments’ tax strategies. In the first part, it is shown that the ability to shift income from high- to low-tax countries affects MNCs’ financial choices. In the second part we show how...

Persistent link: https://www.econbiz.de/10005765711

S-Based Taxation under Default Risk

Panteghini, Paolo - CESifo - 2005

This article studies the characteristics of a S-based tax system under default risk. In particular we show that its neutrality properties depend on whether debt is protected or unprotected. In the former case, this system is neutral. In the latter case, where default timing is optimally chosen...

Persistent link: https://www.econbiz.de/10005766105

Taxes and the Efficiency Costs of Capital Distortions

Weichenrieder, Alfons; Klautke, Tina - CESifo - 2008

Tax neutrality towards alternative financing instruments for corporate investment is a ubiquitous demand in the political debate. At the same time, the literature is surprisingly silent about the magnitude of possible efficiency costs of a departure from tax neutrality. Againstthis background,...

Persistent link: https://www.econbiz.de/10005766235

Profit Shifting by Debt Financing in Europe

Barion, Francesca; Miniaci, Raffaele; Panteghini, Paolo; … - CESifo - 2010

This article aims at analyzing the link between subsidiaries’ capital structure and taxation in Europe. First we introduce a trade-off model, which studies a MNCs’ financial strategy and shows how debt policy allows multinational groups to shift profits from low-tax to high-tax...

Persistent link: https://www.econbiz.de/10008534057