balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank's capital structure is fixed …

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital … multinationals, we find that thin capitalization rules affect multinational firm capital structure in a significant way. Specifically … capitalization rules, which thus far have been understudied, have a substantial effect on the capital structure within multinational …

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital … multinationals, we find that thin capitalization rules significantly affect multinational firm capital structure. Specifically … rules, which thus far have been understudied, have a substantial effect on the capital structure within multinational firms …