Taxation and Capital Structure Choice – Evidence from a Panel of German Multinationals

This paper analyzes the impact of taxes and lending conditions on the financial structure of multinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates of German multinationals in 26 countries in the period from 1996 until 2003. In accordance with the theoretical predictions, the effect of local taxes on leverage is positive for both types of debt. Moreover, while adverse local credit market conditions are found to reduce external borrowing, internal debt is increasing, supporting the view that the two channels of debt finance are substitutes.corporate income tax, multinationals, capital structure, firm-level data

The Impact of Thin-Capitalization Rules on Multinationals' Financing and Investment Decisions

This paper analyzes the role of Thin-Capitalization rules for capital structure choice and investment decisions of multinationals. A theoretical analysis shows that the imposition of such rules tends to affect not only the leverage and the level of investment but also their tax-sensitivity. An empirical investigation of leverage and investment reported for affiliates of German multinationals in 24 countries in the period between 1996 and 2004 offers some support for the theoretical predictions. While Thin-Capitalization rules are found to be effective in restricting debt finance, investment is found to be more sensitive to taxes if debt finance is restricted.Corporate Income Tax, Multinationals, Leverage, Thin-Capitalization Rules, Firm-Level Data

Anti Profit-Shifting Rules and Foreign Direct Investment

This paper explores the effects of tax provisions aimed at restricting multinationals’ tax planning on foreign direct investment (FDI). Using a unique dataset which allows us to observe the worldwide activities of a large panel of multinational firms, we test how limitations of interest tax deductibility, so-called thin-capitalization rules, and regulations of transfer pricing by the host country affect investment and employment of foreign subsidiaries. The results indicate that, compared with the unrestricted case, in the presence of a typical thin-capitalization rule, the tax-rate sensitivity of FDI is about twice as large. Moreover, introducing such a rule or making it more tight exerts significant adverse effects on the level of FDI in high-tax countries. Regulations of transfer pricing, however, are not found to exert significant effects on FDI

The Impact of Thin-Capitalization Rules on Multinationals’ Financing and Investment Decisions

This paper analyzes the role of Thin-Capitalization rules for capital structure choice and investment decisions of multinationals. A theoretical analysis shows that the imposition of such rules tends to affect not only the leverage and the level of investment but also their tax-sensitivity. An empirical investigation of leverage and investment reported for affiliates of German multinationals in 24 countries in the period between 1996 and 2004 offers some support for the theoretical predictions. While Thin-Capitalization rules are found to be effective in restricting debt finance, investment is found to be more sensitive to taxes if debt finance is restricted

Taxation and Capital Structure Choice – Evidence from a Panel of German Multinationals

This paper analyzes the impact of taxes and lending conditions on the financial structure of multinationals’ foreign affiliates. The empirical analysis employs a large panel of affiliates of German multinationals in 26 countries in the period from 1996 until 2003. In accordance with the theoretical predictions, the effect of local taxes on leverage is positive for both types of debt. Moreover, while adverse local credit market conditions are found to reduce external borrowing, internal debt is increasing, supporting the view that the two channels of debt finance are substitutes

Machine Learning Based Diagnostics of Developmental Coordination Disorder using Electroencephalographic Data

We report on promising results concerning the fast and accurate diagnosis of developmental coordination disorder (DCD) which heavily impacts the life of affected children with emotional and behavioral issues. Using a machine learning classifier on spectral data of electroencephalography (EEG) recordings and unfolding the traditional frequency bandwidth in a fine-graded equidistant 99-point spectrum we were able to reach an accuracy of over 99.35 percent having only one misclassification. Our machine learning work contributes to healthcare and information systems research. While current diagnostic methods in use are either complicated, time-consuming, or inaccurate, our automated machine-based approach is accurate and reliable. Our results also provide more insights into the relationship between DCD and brain activity which could stimulate future work in medicine

Effects of physiological state upon nitrosoguanidine-mediated allelic recombination in Saccharomyces cerevisiae

Saccharomyces cerevisiae strain XS-380, a. heteroallelic diploid strain, carries six genetically analyzed loci on the left arm of chromosome VII. Nitrosoguanidine (NMG) at low concentrations was observed to cause allelic recombination (either mitotic recombination or gene conversion) of the heteroallelic loci with low lethality. The NMG-inducible heteroallelic system was used in studies of the relationship of mutagenic action to DNA replication in both randomly and synchronously growing yeast cultures. Studies of asynchronous cultures in balanced logarithmic growth, in the early stationary phase, and in the early phases of amino acid starvation indicated that each locus had a characteristic recombinant response. Two of these conditions, amino acid starvation and early stationary phase, produced a drastic reduction in numbers of induced recombinants. Moreover, after onset of amino acid starvation, a timed series of samples could be individually induced by pulse mutagenesis to show that the mutagen response decreased by the time that DNA synthesis stopped. Similar results were also obtained by substituting cycloheximide treatment for the amino acid starvation conditions in the time course experiment. However, a definite relationship of mutagenic response to DNA replication could not be demonstrated by amino acid starvation or cycloheximide inhibition, because coordinate protein synthesis may be necessary for the maintenance of DNA synthesis. Synchronous cultures also produced ambiguous responses to NMG-mediated pulse mutagenesis. The frequency of inducible mitotic gene conversion increased rapidly before initiation of a discrete synchronous doubling of total DNA. In contrast, high levels of inducible mitotic recombination could also be obtained during the period of DNA replication with decreasing levels toward the end of the first round of DNA doubling. Most of the markers on the chromosome arm displayed similar cyclic variations in recombination frequency. It was suggested that the cyclic activity of DNA repair enzymes may be responsible for the variations of inducible prototroph frequencies during synchronous growth. No definite direction of recombination or polarity could be observed on the chromosome