Capital Structure and International Debt Shifting
Title | Capital Structure and International Debt Shifting PDF eBook |
Author | Mr.Luc Laeven |
Publisher | International Monetary Fund |
Pages | 39 |
Release | 2007-02-01 |
Genre | Business & Economics |
ISBN | 1451866038 |
This paper presents a model of a multinational firm's optimal debt policy that incorporates international taxation factors. The model yields the prediction that a multinational firm's indebtedness in a country depends on a weighted average of national tax rates and differences between national and foreign tax rates. These differences matter because multinationals have an incentive to shift debt to high-tax countries. The predictions of the model are tested using a novel firm-level dataset for European multinationals and their subsidiaries, combined with newly collected data on the international tax treatment of dividend and interest streams. Our empirical results show that corporate debt policy indeed not only reflects domestic corporate tax rates but also differences in international tax systems. These findings contribute to our understanding of how corporate debt policy is set in an international context.
International Debt Shifting
Title | International Debt Shifting PDF eBook |
Author | Jarle Møen |
Publisher | |
Pages | |
Release | 2019 |
Genre | |
ISBN |
Capital Structure and International Debt Shifting
Title | Capital Structure and International Debt Shifting PDF eBook |
Author | Jarle Moen |
Publisher | |
Pages | |
Release | 2009 |
Genre | |
ISBN |
International Debt Shifting
Title | International Debt Shifting PDF eBook |
Author | Jarle Møen |
Publisher | |
Pages | 45 |
Release | 2011 |
Genre | Corporate tax |
ISBN |
Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting debt from affiliates in low tax countries to affiliates in high tax countries. Previous papers have either omitted internal debt or external debt from the analysis. We are the first to model the companies' choice between internal and external debt shifting and show that it is optimal for them to use both types of debt to save taxes. Using a large panel of German multinationals, we find strong empirical support for our model. The estimated coefficients suggest that internal and external debt shifting are of about equal relevance. Since the tax variables that determine the incentive to shift internal and external debt are correlated both with each other and with the host country tax rate, previous estimates of the tax sensitivity of debt suffer from omitted variable bias.
Capital Structure and International Debt Shifting
Title | Capital Structure and International Debt Shifting PDF eBook |
Author | |
Publisher | |
Pages | 0 |
Release | 2011 |
Genre | |
ISBN | 9783844379679 |
International Debt Statistics 2021
Title | International Debt Statistics 2021 PDF eBook |
Author | World Bank |
Publisher | World Bank Publications |
Pages | 227 |
Release | 2020-12-21 |
Genre | Business & Economics |
ISBN | 1464816115 |
International Debt Statistics (IDS), a long-standing annual publication of the World Bank, features external debt statistics and analysis for the 120 low- and middle-income countries that report to the World Bank Debtor Reporting System. IDS 2021 includes (1) an overview analyzing global trends in debt stocks of and debt flows to low- and middle-income countries within the framework of aggregate capital flows (debt and equity); (2) a feature story on the World Bank and International Monetary Fund Debt Service Suspension Initiative in response to the COVID-19 pandemic; (3) tables and charts detailing debtor and creditor composition of debt stock and flows, terms of new commitments, and maturity structure of future debt service payments and debt burdens, measured in relation to gross national income and export earnings for each country; (4) one-page summaries per country, plus global, regional, and income group aggregates showing debt stocks and flows, relevant debt indicators, and metadata for six years (2009 and 2015†“19); and (5) a user guide describing the tables and content, definitions and rationale for the country and income groupings used in the report, data notes, and information about additional resources and comprehensive data sets available to users online. Unique in its coverage of the important trends and issues fundamental to the financing of low- and middle-income countries, IDS 2021 is an indispensable resource for governments, economists, investors, financial consultants, academics, bankers, and the entire development community. For more information on IDS 2021 and related products, please visit the World Bank’s Data Catalog at https://datacatalog.worldbank.org/dataset/international-debt-statistics.
Global Waves of Debt
Title | Global Waves of Debt PDF eBook |
Author | M. Ayhan Kose |
Publisher | World Bank Publications |
Pages | 403 |
Release | 2021-03-03 |
Genre | Business & Economics |
ISBN | 1464815453 |
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.