Konferenzbeitrag
Tax Influence on Financial Structures of M&As
A well-known strategy of tax avoidance by multinationals is to locate debt in subsidiaries in countries with a high tax rate. In case of M&As it is particularly advantageous to locate debt at the level of holdings. By using firm-level data provided by the German Central Bank, I show empirically that indeed the probability that a firm is held by a holding in the same country increases with the local tax rate. Furthermore, consolidating the balance sheets of firms and their holdings leads to a stronger effect of taxes on the debt ratio. However, I find this effect only for a sample of all firms and no additional effect in case of M&As. I conclude that those findings may be one explanation why previous studies have found relatively low effects of taxes on debt financing.
- Sprache
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Englisch
- Erschienen in
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Business Economics II ; No. E07-V1
- Klassifikation
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Wirtschaft
Multinational Firms; International Business
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Business Taxes and Subsidies including sales and value-added (VAT)
Tax Evasion and Avoidance
Fiscal Policies and Behavior of Economic Agents: Firm
- Thema
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Corporate Taxation
Multinational Entities
Foreign Direct Investment
Capital structure
Mergers and acquisitions
Empirical Analysis
Firm-level data
- Ereignis
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Geistige Schöpfung
- (wer)
-
Harendt, Christoph
- Ereignis
-
Veröffentlichung
- (wer)
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ZBW - Leibniz-Informationszentrum Wirtschaft
- (wo)
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Kiel, Hamburg
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Konferenzbeitrag
Beteiligte
- Harendt, Christoph
- ZBW - Leibniz-Informationszentrum Wirtschaft
Entstanden
- 2018
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