277 research outputs found
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
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
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
The impact of thin-capitalization rules on multinationals' financing and investment decisions
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 affect multinationals' capital structure choice but also investment. An empirical investigation exploits a large firm-level panel dataset of multinationals in order to analyze the impact of thin-capitalization rules on capital structure choice and investment in the OECD and some further European countries in the time period between 1996 and 2004. The results indicate that thin-capitalization rules are effective in curbing tax planning via intercompany loans. However, investment is found to be adversely affected. --Corporate Income Tax,Multinationals,Leverage,Thin-Capitalization Rules,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
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
Testing for Chaos in Deterministic Systems with Noise
Recently, we introduced a new test for distinguishing regular from chaotic
dynamics in deterministic dynamical systems and argued that the test had
certain advantages over the traditional test for chaos using the maximal
Lyapunov exponent.
In this paper, we investigate the capability of the test to cope with
moderate amounts of noisy data. Comparisons are made between an improved
version of our test and both the ``tangent space'' and ``direct method'' for
computing the maximal Lyapunov exponent. The evidence of numerical experiments,
ranging from the logistic map to an eight-dimensional Lorenz system of
differential equations (the Lorenz 96 system), suggests that our method is
superior to tangent space methods and that it compares very favourably with
direct methods
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