We examine whether U.S. multinationals’ private and public debt constraints influence their responses to a temporary reduction in repatriation taxes. Using a sample of 421 U.S. multinationals with permanently reinvested earnings, we find that external debt constraints played an important role...

We examine large U.S. corporations' off-balance sheet financing over the period 1989-2001. We construct firm-level proxies of off-balance sheet debt by comparing firms' tax return vs. financial statement reporting for interest expense and debt. Our results indicate that firms' financial...