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http://hdl.handle.net/10419/18718
  

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dc.contributor.authorRamb, Freden_US
dc.contributor.authorWeichenrieder, Alfons J.en_US
dc.date.accessioned2009-01-28T15:52:23Z-
dc.date.available2009-01-28T15:52:23Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/18718-
dc.description.abstractThe paper analyses the financial structure of German inward FDI. From a tax perspective, intra-company loans granted by the parent should be all the more strongly preferred over equity the lower the tax rate of the parent and the higher the tax rate of the German affiliate. From our study of a panel of more than 8,000 non-financial affiliates in Germany, we find only small effects of the tax rate of the foreign parent. However, our empirical results show that subsidiaries that on average are profitable react more strongly to changes in the German corporate tax rate than this is the case for less profitable firms. This gives support to the frequent concern that high German taxes are partly responsible for the high levels of intracompany loans. Taxation, however, does not fully explain the high levels of intra-company borrowing. Roughly 60% of the cross-border intra-company loans turn out to be held by firms that are running losses.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1355en_US
dc.subject.jelH25en_US
dc.subject.jelF23en_US
dc.subject.ddc330en_US
dc.subject.keywordforeign direct investmenten_US
dc.subject.keywordfinancial structureen_US
dc.subject.keywordtaxationen_US
dc.subject.keywordGermanyen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwInternationale Finanzierungen_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwAuslandsniederlassungen_US
dc.subject.stwSteuerbelastungen_US
dc.subject.stwDeutschlanden_US
dc.titleTaxes and the financial structure of German inward FDIen_US
dc.typeWorking Paperen_US
dc.identifier.ppn477479529en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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