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Full-Text Articles in Business
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew Roper
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew Roper
Matteo P. Arena
We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in 59 countries. We analyze firms' marginal decisions of where to issue debt to investigate the influence of a comprehensive set of tax-related effects, including differences in personal and corporate tax rates, tax credit and exemption systems, and bi-lateral cross-country withholding taxes on interest and dividend payments. Our results show that differences in personal and corporate tax rates, the presence of dividend imputation or …
Takeover Exposure, Agency, And The Choice Between Private And Public Debt, Matteo Arena, John Howe
Takeover Exposure, Agency, And The Choice Between Private And Public Debt, Matteo Arena, John Howe
Matteo P. Arena
We examine how governance characteristics are related to the corporate choice between public and private debt. We find that firms with fewer takeover defenses and larger outside blockholder ownership are more likely to borrow from banks and to issue 144A debt. We also document that public debt cost is more sensitive to takeover exposure than bank debt cost. These results are consistent with the hypothesis that banks mitigate the expected negative effect of takeovers on debt value through covenants and debt renegotiations. Moreover, we show that firms with weaker internal monitoring are less likely to borrow from banks.
Price Momentum And Idiosyncratic Volatility, Matteo Arena, K. Haggard, Xuemin Yan
Price Momentum And Idiosyncratic Volatility, Matteo Arena, K. Haggard, Xuemin Yan
Matteo P. Arena
No abstract provided.