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Khorrami, Paymon; Zentefis, Alexander K. - 2020

exists, arbitrage opportunities must also exist. Conversely, at times when arbitrage profits exist, asset markets are … susceptible to self-fulfilling fluctuations. The tight theoretical connection between price volatility and arbitrage is detectable …

Persistent link: https://www.econbiz.de/10012260973

The dominant currency financing channel of external adjustment

Casas, Camila; Meleshchuk, Sergii; Timmer, Yannick - 2023

to higher delinquencies and interest rates, while exports are unaffected. Natural and financial hedging successfully mute …

Persistent link: https://www.econbiz.de/10014304470

Can time-varying currency risk hedging explain exchange rates?

Bräuer, Leonie; Hau, Harald - 2022

bond positions, which creates a net hedging demand for dollar assets that depreciates USD rates in both the forward and … spot markets. We document the time-varying nature of this net hedging demand and show how it relates to eco … FX hedging pressure can account for approximately 30% of all monthly variation in the seven most important dollar …

Persistent link: https://www.econbiz.de/10013440410

The political economy of international finance corporation lending

Dreher, Axel; Richert, Katharina - 2017

The bulk of International Finance Corporation (IFC) lending benefits companies from rich countries, and projects in countries with middle income. Large conglomerates such as Lidl or Mövenpick have been among its direct beneficiaries. This contrasts to some extent with the IFC's official...

Persistent link: https://www.econbiz.de/10011721768

The impact of thin-capitalization rules on multinationals' financing and investment decisions

Büttner, Thiess; Overesch, Michael; Schreiber, Ulrich; … - 2006

Persistent link: https://www.econbiz.de/10003379792

Intercompany loans and profit shifting : evidence from company-level data

Büttner, Thiess (contributor); Wamser, Georg (contributor) - 2007

Persistent link: https://www.econbiz.de/10003496795

Profit shifting by debt financing in Europe

Barion, Francesca; Miniaci, Raffaele; Panteghini, Paolo; … - 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 jurisdictions. By...

Persistent link: https://www.econbiz.de/10003944704

Debt financing and sharp currency depreciations : wholly vs. partially owned multinational affiliates

Hebous, Shafik; Weichenrieder, Alfons J. - 2009

This paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent...

Persistent link: https://www.econbiz.de/10003923516

Credit market imperfections in middle income countries

Tornell, Aaron; Westermann, Frank - 2003

In this paper we document three credit market imperfections prevalent in middle income countries that can help to explain boom-bust cycles, as well as other macroeconomic patterns observed at higher frequencies across these countries. These imperfections are: the existence of financing...

Persistent link: https://www.econbiz.de/10011507971

Taxation and the financial structure of German outbound FDI

Mintz, Jack M. (contributor); … - 2005

The paper analyzes the financial structure of outbound FDI during the period 1996-2002 by drawing on up to 54,022 firm-year observations of 13,758 German-owned subsidiaries. We find that the tax rate in the host country has a sizeable and significantly positive effect on leverage for...

Persistent link: https://www.econbiz.de/10003297527