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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19715| Title: | The impact of thin-capitalization rules on multinationals' financing and investment decisions |
| Keywords: | G32 H26 H25 ddc:330 Corporate Income Tax Multinationals Leverage Thin-Capitalization Rules Firm-Level Data Multinationales Unternehmen Kapitalstruktur Fremdkapital Steuerrecht Steuerwirkung Internationale Finanzierung Investition Deutschland |
| Issue Date: | 16-Oct-2013 |
| Description: | 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. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19715 |
| Other Identifiers: | http://hdl.handle.net/10419/19715 ppn:559685106 RePEc:zbw:bubdp1:7114 |
| Appears in Collections: | EconStor |
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