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dc.contributor.authorHebous, Shafiken_US
dc.contributor.authorWeichenrieder, Alfons J.en_US
dc.date.accessioned2010-01-27en_US
dc.date.accessioned2010-05-14T08:23:41Z-
dc.date.available2010-05-14T08:23:41Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/30654-
dc.description.abstractThis paper provides empirical evidence on two potential costs of shared ownership of German affiliates abroad. First, in periods of currency crises, wholly-owned affiliates, in contrast to partially-owned affiliates, seem to circumvent financial constraints by accessing capital from their parent companies. In terms of differences in performance regarding sales of both types of firms, wholly-owned affiliates have a significantly better sales performance than partially-owned affiliates in periods of crises. This finding contributes to the evidence that FDI helps in mitigating the negative consequences of sharp currency depreciation, and stresses that this effect works especially through capital inflows to wholly-owned affiliates. Second, the debt financing of partially-owned affiliates is less sensitive to the tax rate suggesting that partially-owned affiliates rely less on international debt shifting than wholly-owned affiliates. This indicates that partially-owned affiliates are less flexible to exploit tax efficient strategies.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2892en_US
dc.subject.jelF23en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordforeign direct investmenten_US
dc.subject.keywordcapital structureen_US
dc.subject.keywordownership structureen_US
dc.subject.keywordcurrency crisesen_US
dc.subject.keywordcorporate taxationen_US
dc.titleDebt financing and sharp currency depreciations: wholly vs. partially owned multinational affiliatesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn617262292en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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