sample of non-financial corporations (around 120,000 firms) in six euro area countries (Belgium, Germany, France, Italy, the … Netherlands and Spain). The results indicate that financial position is important to explain capital expenditures, as financial …

countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we … corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so …