Despite the continuing political interest in the usefulness of tax competition and tax coordination as well as the wealth of theoretical analyses, it still remains open whether or when tax competition is harmful. Moreover, the influence of tax differentials on multinationals' decisions is still...

This paper provides a quantitative review of the empirical literature on the tax impact on corporate debt financing. Synthesizing the evidence from 46 previous studies, we find that this impact is substantial. In particular, the tax rate proxy determines the outcome of primary analyses. Measures...

This paper explores the implications of high indebtedness for strategic tax setting in internationally integrated capital markets. When public borrowing is constrained due to default, a rise in a country's initial debt level lowers investment in public infrastructure and makes tax setting more...

The process of globalization has an important impact on national tax policies. Most of the literature on taxation of capital in open economies does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs....

Repatriation taxes reduce the competitiveness of multinational firms from tax credit countries when bidding for targets in low tax countries. This comparative disadvantage with respect to bidders from exemption countries violates ownership neutrality, which results in production inefficiencies...

Using a comprehensive sample of M&A deals around the world, we analyze the effect of corporate capital gains taxation on M&As involving corporate sellers (e.g. subsidiary sales). Capital gains taxation distorts the market for corporate control by imposing a cost on corporate sellers which leads...