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| Content Provider | Springer Nature Link |
|---|---|
| Author | Buettner, Thiess Overesch, Michael Schreiber, Ulrich Wamser, Georg |
| Copyright Year | 2011 |
| Abstract | This paper analyzes the impact of corporate taxes on the capital structure of foreign subsidiaries of multinational firms. The empirical investigation employs a large micro-level panel dataset of German multinationals covering 31 countries over a 10-year period. A special feature of this dataset is that it allows us to distinguish between internal and external debt financing. Our results confirm a positive effect of local tax rates on 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. Our findings suggest that internal credit markets give rise to significant advantages and enhance multinationals’ opportunities to use debt as a tax shield. |
| Starting Page | 1325 |
| Ending Page | 1339 |
| Page Count | 15 |
| File Format | |
| ISSN | 00442372 |
| Journal | Zeitschrift für Betriebswirtschaft |
| Volume Number | 81 |
| Issue Number | 12 |
| e-ISSN | 18618928 |
| Language | English |
| Publisher | SP Gabler Verlag |
| Publisher Date | 2011-11-18 |
| Publisher Place | Wiesbaden |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Multinational corporation Capital structure Corporate income taxation Internal debt External debt Firm-level data Management/Business for Professionals Production/Logistics/Supply Chain Business/Management Science Human Resource Management Accounting/Auditing Organization/Planning |
| Content Type | Text |
| Resource Type | Article |
| Subject | Business and International Management Economics and Econometrics |
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