Tax Status and Tax Response Heterogeneity of Multinationals' Debt Finance

Beitrag in einer Fachzeitschrift


Details zur Publikation

Autor(en): Büttner T, Overesch M, Wamser G
Zeitschrift: Finanzarchiv
Verlag: Mohr Siebeck
Jahr der Veröffentlichung: 2011
Heftnummer: 67
Seitenbereich: 103-122
ISSN: 0015-2218


Abstract


This paper analyzes how corporate taxation affects the capital structure of subsidiaries of multinational companies. The emphasis is on firm characteristics that proxy for the tax status of a subsidiary, which is crucial for the tax responsiveness of firms. Based on a comprehensive panel of German multinationals, we find that the tax sensitivity of the capital structure is significantly affected by several firm characteristics. Our results imply that well-known non-debt tax shields such as depreciation allowances and loss carryforwards reduce the tax sensitivity of the debt-to-capital ratio. We also find that a higher probability of experiencing losses reduces the tax-rate sensitivity of debt financing. © 2011 Mohr Siebeck.



FAU-Autoren / FAU-Herausgeber

Büttner, Thiess Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Finanzwissenschaft


Autor(en) der externen Einrichtung(en)
Eberhard Karls Universität Tübingen
Zentrum für Europäische Wirtschaftsforschung (ZEW)


Zitierweisen

APA:
Büttner, T., Overesch, M., & Wamser, G. (2011). Tax Status and Tax Response Heterogeneity of Multinationals' Debt Finance. Finanzarchiv, 67, 103-122. https://dx.doi.org/10.1628/001522111X588781

MLA:
Büttner, Thiess, Michael Overesch, and Georg Wamser. "Tax Status and Tax Response Heterogeneity of Multinationals' Debt Finance." Finanzarchiv 67 (2011): 103-122.

BibTeX: 

Zuletzt aktualisiert 2018-09-08 um 17:23