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Evaluating the effects of ACE systems on multinational debt financing and investment
Hebous, Shafik; Ruf, Martin - 2015
, passive investment, and active investment of multinational firms, using high-quality administrative data on virtually all …) variations across affiliates within the multinational group. Our results suggest that an ACE reduces the corporate debt ratio of … multinational affiliates. Additionally, an ACE increases intra-group lending and other forms of passive investment but has no …
Persistent link: https://www.econbiz.de/10010519931
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The commitment role of equity financing
Fahn, Matthias; Merlo, Valeria; Wamser, Georg - 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/10010366170
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The tax-efficient use of debt in multinational corporations
Møen, Jarle; Schindler, Dirk; Schjelderup, Guttorm; … - 2018
multinational groups. We model the trade-off between the use of external debt, parental debt and an internal bank. We test the …
Persistent link: https://www.econbiz.de/10011872932
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A theory of outside equity : financing multiple projects
Bougheas, Spiros P.; Wang, Tianxi - 2019
In the financial economics literature debt contracts provide efficient solutions for addressing managerial moral hazard problems. We analyze a model with multiple projects where the manager obtains private information about their quality after the contract with investors is agreed. The...
Persistent link: https://www.econbiz.de/10011962270
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Taxation and the optimal constraint on corporate debt finance
Sørensen, Peter Birch - 2014
The tax bias in favour of debt finance under the corporate income tax means that corporate debt ratios exceed the socially optimal level. This creates a rationale for thin-capitalization rules limiting the amount of debt that qualifies for interest deductibility. This paper sets up a model of...
Persistent link: https://www.econbiz.de/10010438191
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Investor taxation, firm heterogeneity and capital structure choice
Haring, Magdalena; Niemann, Rainer; Rünger, Silke - 2016
We analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific payout policy on firms' capital structure choice. Our analysis is based on data for 10,983 firms from 13 Central and Eastern European (CEE) countries over the time period 2002-2012. Our results...
Persistent link: https://www.econbiz.de/10011541065
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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
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Profit shifting by debt financing in Europe
Barion, Francesca; Miniaci, Raffaele; Panteghini, Paolo; … - 2010
introduce a trade-off model, which studies a MNCs' financial strategy and shows how debt policy allows multinational groups to …
Persistent link: https://www.econbiz.de/10003944704
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International debt shifting : do multinationals shift internal or external debt?
Møen, Jarle; Schindler, Dirk; Schjelderup, Guttorm; … - 2011
Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting …
Persistent link: https://www.econbiz.de/10009230788
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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