The following thesis tries to take benefit of the unique setting of a corporate spin-off transaction in order to investigate capital structure determinants. The study reveals evidence that companies involved in a European spin-off transaction allocate financial leverage ratios according to the pecking order theory. Profitability of post-spin-off companies affects financial leverage ratios negatively. Growth, lower financial distress costs and the size of a company influences the financial leverage ratio positively. No relation is observed between non-debt tax shield and financial leverage. Even though post-spin-off companies emerging from the spin-off transaction with lower leverages are associated with higher business risk, no evidence is found that risk influences financial leverage ratios.

This research aims to examine, through the capital structure prism, the financial output of industries in Western Europe. Although scientists have been motivated for several years by the subject of the structure of corporate capital, very little research has been done on the sample of industries in Western Europe. Identifying the key factors affecting the level of leverage in selected Western European industries is the main objective of this study. The data covers the period from 2011 to 2019. The main factors that are chosen for this analysis are leverage, profitability, risk, growth, capital expenditure, firm's value, and effective tax rate. A cross-sectional and panel data regression is performed to get the empirical results. This study also explains how the ideal debt structure relies on company features such as its software, its credit rating, and its asset market (P. Bolton, and D. Scharfstein., 1996). As presented by Boyce and Kalotay (1979) and Brick and Ravid (1985 and 1991), because of tax-related advantages, the use of long-term debt is preferable. Barclay, M. J., Smith, Jr, C. W., & Morellec, E. (2006) also present that if a tax advantage to debt and non-stochastic interest rates exist, long-term debt will increase the present value of the tax benefits of debt if the term structure of interest rates, adjusted for the risk of default, is increasing. Along with this research, the previous case studies based on the capital structure by different authors are discussed as well. This thesis empirically aims at debt specialization, corporate optimal debt structure choices, and how different profitability levels affect the organizational determinants.

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.

A Wall Street Journal, Financial Times, and Bloomberg Businessweek Book of the Year Why our banking system is broken—and what we must do to fix it New bank failures have been a rude awakening for everyone who believed that the banking industry was reformed after the Global Financial Crisis—and that we’d never again have to choose between massive bailouts and financial havoc. The Bankers’ New Clothes uncovers just how little things have changed—and why banks are still so dangerous. Writing in clear language that anyone can understand, Anat Admati and Martin Hellwig debunk the false and misleading claims of bankers, regulators, politicians, academics, and others who oppose effective reform, and they explain how the banking system can be made safer and healthier. Thoroughly updated for a world where bank failures have made a dramatic return, this acclaimed and important book now features a new preface and four new chapters that expose the shortcomings of current policies and reveal how the dominance of banking even presents dangers to the rule of law and democracy itself.

This papers analyses the effect of investor level taxes, company ownership structure and dividend payout policy on a company's capital structure choice. The analysis is based on data for 10,003 companies from 11 Central and Eastern European (CEE) countries over the period 2002-2012. The results show a positive impact from the net tax benefit of debt on the debt ratio of a company.

'I can fully recommend this book to those interested in the transmission process of monetary policy.' - Harry Garretsen, De Economist Due to financial market imperfections it is imperative to analyse the relationship between financial structure and the monetary policy transmission process in Europe to effectively design and implement European monetary policy. Focusing on the years 1980-1995 and providing empirical evidence for six European countries, namely Germany, France, Italy, the UK, Belgium and the Netherlands, the author discusses whether cross-country variations in financial structure have a systematic relationship with inter-country differences in the monetary transmission process. The analysis of this is invaluable as differences in financial structures across EMU countries may hamper the implementation of a common European monetary policy in the future. The conclusion is that some elements of the financial structure are clearly relevant and applicable for European monetary policy and the monetary transmission process in particular.