This paper analyzes how corporate taxation and regulatory requirements affect the location of financial sector FDI. We use novel information on new financial services entities established by multinational firms in 83 host countries. We find a negative effect of host country taxes on the...

Little is known about how banks shift profits to low-tax countries. Because of their specific business model, banks use profit shifting channels different from those of other firms. We propose a novel and bank-specific method of profit shifting: the strategic relocation of proprietary trading to...

This thesis consists of three essays examining banks’ tax response. The first essay Tax vs. Regulation Policy and the Location of Financial Sector FDI is co-authored with Prof. Dr. Michael Overesch, Chair of Business Taxation at the University of Cologne and Prof. Dr. Georg Wamser, Chair of...

This paper explores how corporate taxes affect the financial structure of multinational banks. Guided by a simple theory of optimal capital structure it tests (i) whether corporate taxes induce subsidiary banks to raise their debt-asset ratio in light of the traditional debt bias; and (ii)...

In this study, I investigate the impact of legal determinants on the presence of foreign banks. Using a panel dataset of 44 countries for the 2005–2012 period, I find that host countries attract more foreign banks when regulatory restrictions on foreign direct investment are low, when the...

This article argues that multinational banks have characteristics which are unique and distinguishable from traditional multinational entities. The first distinguishing feature is the unique nature of the services and consequent products supplied by multinational banks, which are aimed at...