We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized …

pricing and intragroup debt financing (through loans and leases) under both separate accounting and formula apportionment. Our …

multinational groups. We model the trade-off between the use of external debt, parental debt and an internal bank. We test the …: (i) smaller firms often rely on parental debt financing; (ii) larger multinationals are more likely to use internal banks …; (iii) parental debt and external debt are substitutes and the mix depends on the relative cost of raising capital through …

multinational firms show that the tax sensitivity of debt is more modest than what one would expect given the incentives for profit … that pertains to the use of debt. …

Multinational companies can exploit the tax advantage of debt more aggressively than national companies. Besides … utilizing the standard debt tax shield, multinationals can shift debt from affiliates in low-tax countries to affiliates in high …-tax countries. We study the capital structure of multinationals and expand previous theory by incorporating debt tax shield effects …

The aim of this study is to review the level of debt and the impact of taxation on the capital structure of companies … capitalization influenced entities' capital structure determinants, but had no significant impact on the companies' level of debt. …

&A) conducted by multinational entities (MNE). Previous research has already found evidence for tax avoidance by debt shifting. I … analyze the importance of locating debt at holdings which own the operating firm. Placing debt at the level of the holding is … more advantageous since it allows inter alia for debt financing up to the purchase price. Accordingly, by using firm …

-owned affiliates. Second, the debt financing of partially-owned affiliates is less sensitive to the tax rate suggesting that partially …-owned affiliates rely less on international debt shifting than wholly-owned affiliates. This indicates that partially-owned affiliates …

Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting … debt from affiliates in low tax countries to affiliates in high tax countries. Previous papers have either omitted internal … debt or external debt from the analysis. We are the first to model the companies' choice between internal and external debt …