We revisit the effects of double tax treaties on foreign direct investment. Previous empirical studies provide somewhat counterintuitive results suggesting insignificant or even negative effects of tax treaties. Using a rich firm-level dataset provided by the German Central Bank we analyze the...

The International Financial Reporting Standards (IFRS) require a company to account forcurrent and future tax consequences, due to transactions and other events recognised inprofit or loss (IAS 12). Reported tax expense (tax income) seems to be relevant for bothcompany tax management (Bolton,...

Taxes play an important role in determining the capital structure of companies. Consequently,a multinational company would choose its capital structure according to differencesin international taxation. Unlike purely national firms, multinationals can also use intercompanyloans to shift profits...

This paper analyzes the impact of taxes and lending conditions on the financial structure ofmultinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates ofGerman multinationals in 26 countries in the period from 1996 until 2003. In accordance withthe theoretical...

This paper analyzes the effectiveness of thin-capitalization rules in preventing debt financeby intercompany loans and explores their consequences for corporate decisions. A theoreticaldiscussion emphasizes that limitations of the deduction of interest owed to foreign afiliateswould not only...

This paper analyzes the effectiveness of thin-capitalization rules in preventing debt finance by intercompany loans and explores their consequences for corporate decisions. A theoretical discussion emphasizes that limitations of the deduction of interest owed to foreign affiliates would not only...