TY  - UNPD
A1  - Ramb, Fred
A1  - Weichenrieder, Alfons J.
T1  - Taxes and the financial structure of German inward FDI
T2  - CESifo GmbH: CESifo working papers ; No. 1355 : Category 1, Public finance
N2  - The 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. JEL - Klassifikation H25 , F23 .
KW  - Direktinvestition / Internationale Finanzierung / Kapitalstruktur / Auslandsniederlassung / Steuerbelastung / Deutschland
KW  - foreign direct investment
KW  - financial structure
KW  - taxation
KW  - Germany
Y1  - 2004
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4847
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-6226
PB  - CESifo
CY  - München
ER  -