Taxation and leverage in international banking / prepared by Grace Weishi Gu, Ruud de Mooij, and Tigran Poghosyan.
This paper explores how corporate taxes affect the financial structure of multinational banks. Guided by a simple theory of optimal capital structure it tests (i) whether corporate taxes induce subsidiary banks to raise their debt-asset ratio in light of the traditional debt bias; and (ii) whether i...
Full description
Saved in: