We examine the influence of taxes on U.S. corporations' methods of financing taxable stock acquisitions during 1987-1997. Our tests provide the first empirical evidence that acquiring-firms' foreign tax credit positions can significantly reduce their propensity to use debt (versus internal...

We examine the influence of corporate taxes on U.S. firms' financing methods for taxable acquisitions of 100 percent of a target corporation's stock. We conduct tests of acquirer firms' use of debt or internal funds as the funding source for these acquisitions over the period 1987-1997. Our...

We examine the influence of taxes on where firms source their interest deductions using data on foreign debt offerings by U.S. multinationals during 1987-1997. This unique data not only allows us to identify the location of firms' debt issues, but it allows us to control for non-tax factors...