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Using a firm-level dataset this paper investigates the impact of taxation on the decision of German multinationals to hold direct investments in other European countries or abroad. Controlling for firm-specific differences in the valuation of potential locations, the results confirm significant effects of tax incentives, market size, and of labor cost on(More)
The paper evaluates the working of German CFC rules that restrict the use of foreign subsidiaries located in low-tax countries to shelter the income from passive investment from home taxation. While passive investments make up a large fraction of German outbound FDI, we find that German CFC rules are quite effective in restricting investments in low-tax(More)
We examine the capital structures of multinational companies. Multinational companies can exploit the tax advantage of debt more aggressively than national companies by shifting debt from affiliates in low-tax countries to affiliates in high-tax countries. Previous papers have omitted either internal debt or external debt from the analysis. We are the first(More)
Bifocal intraocular lenses (BIOLs) reduce image contrast. We measured contrast sensitivity (CS) to evaluate the clinical significance of the loss in image contrast. Four groups were compared: 15 patients with a monofocal IOL, 13 with the True Vista BIOL, 13 with the AcuraSee BIOL, 11 with the diffractive BIOL. CS was measured using the Mentor B-VAT II-SG.(More)
Theory recommends aligning the tax treatment of debt and equity. A few countries, notably Belgium, have introduced an allowance for corporate equity (ACE) to achieve tax neutrality. We study the effects of adopting an ACE on debt financing, passive investment, and active investment of multinational firms, using high-quality administrative data on virtually(More)
We examine the determinants of the mode of entry of multinational …rms into the foreign economy using a novel …rm-level dataset on German outbound FDI. Further, we allow the …rm to select its investment mode (M&A vs. Green…eld investment) and its ownership mode (wholly-owned vs. partially-owned) simultaneously. We avoid the assumption of the independence of(More)
Until 2009, the United Kingdom operated a system of worldwide taxation. Taxation of foreign income was deferred until repatriated as dividends, leaving UK-owned multinational firms the possibility of avoiding UK taxation by delaying dividend payments and keeping earnings abroad. In 2009, the UK switched to a system under which all foreign-earned income is(More)
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