This paper examines the relationship between foreign and domestic investment activity of multinational enterprises. The … investment in fixed assets. The empirical approach, which rests upon extensive and intensive margin variation, is shown to … produce very robust results. These suggest a positive relationship between foreign and home investment in real capital. This …

This paper explores the effects of tax provisions aimed at restricting multinationals' tax planning on foreign direct … investment (FDI). Using a unique dataset which allows us to observe the worldwide activities of a large panel of multinational … transfer pricing by the host country affect investment and employment of foreign subsidiaries. The results indicate that …

This paper investigates the role of corporate taxation with respect to a multinational's investment decision, in which … the multinational can pursue either a direct or an indirect investment strategy. The latter involves at least three … countries, because it supports multinationals in avoiding taxes. The empirical findings of this study are consistent with …

This paper investigates the role of corporate taxation with respect to a multinational's investment decision, in which … the multinational can pursue either a direct or an indirect investment strategy. The latter involves at least three … countries, because it supports multinationals in avoiding taxes. The empirical findings of this study are consistent with …

Some multinationals use the parent company as a lender to the group, whereas others set up an internal bank in a low … theory model using data on the universe of German multinationals. The empirical analysis largely supports our model in that …: (i) smaller firms often rely on parental debt financing; (ii) larger multinationals are more likely to use internal banks …

This paper analyzes the role of Thin-Capitalization rules for capital structure choice and investment decisions of … multinationals. A theoretical analysis shows that the imposition of such rules tends to affect not only the leverage and the level of … investment but also their tax-sensitivity. An empirical investigation of leverage and investment reported for affiliates of …