The Capital Structure of Multinational Companies under Tax Competition

Paolo Panteghini

No 1721, CESifo Working Paper Series from CESifo

Abstract: This article studies the relationship between debt policies of multinational companies (MNCs) and governments’ tax strategies. In the first part, it is shown that the ability to shift income from high- to low-tax countries affects MNCs’ financial choices. In the second part we show how MNCs’ financial decisions can affect the tax strategies of two governments competing to attract income.

Keywords: capital structure; country risk; default; multinationals; tax competition (search for similar items in EconPapers)
JEL-codes: G31 H25 H32 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-acc, nep-fin, nep-fmk and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Journal Article: The capital structure of multinational companies under tax competition (2009)
Working Paper: The Capital Structure of Multinational Companies Under Tax Competition (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1721

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