firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and …. Debt, on the other hand, has an adverse effect on the enforceability of these arrangements because too much debt increases … creditors. Our analysis provides an explanation for why some firms only use little debt financing. Predictions made by our …

By granting intracompany loans to their foreign affiliates, multinational firms may reduce their tax liability abroad … on corporate policy. We find that tightening the regulations in 2001 had some limiting effect on leverage. Foreign …

firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky …-price firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than exible …

) countries over the time period 2002-2012. Our results show a significant impact of the net tax benefit of debt on the debt ratio … of firms. Ignoring firm heterogeneity, an increase in the net tax benefit of debt by 10 percentage points leads to an … increase in the net tax benefit of debt of 10 percentage points leads to an increase in the debt ratio of only 1.27 percentage …

affiliate's debt to assets ratio by 0.8%, which shows that rules targeting internal leverage have an indirect effect on the …This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital … countries for the period 1982-2004. Using confidential data on the internal and total leverage of foreign affiliates of US …

100% leverage tax on assets such as letters of credit would reduce their natural attractiveness relative to higher … created leverage ratio for trade. This paper offers a relatively simple model approach showing the conditions under which the …-risk ones, which stand in the balance sheet of banks. The decision by the Basel Committee in early 2014 weakening the leverage …

regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased … set of local exchange carriers-LECs in the U.S. and investigate Granger causality between changes in long-term debt (NDEBT … uni-directional causality from INV to NDEBT and therefore is, to a large extent, consistent with a leverage effect and …

from 1996 until 2003. In accordance with the theoretical predictions, the effect of local taxes on leverage is positive for … both types of debt. Moreover, while adverse local credit market conditions are found to reduce external borrowing, internal … debt is increasing, supporting the view that the two channels of debt finance are substitutes …