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Full-Text Articles in Business
Capital Structure And Political Risk In Asia-Pacific Real Estate Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Capital Structure And Political Risk In Asia-Pacific Real Estate Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Finance Faculty Research and Publications
This study investigates the determinants of capital structure decisions by real estate firms, with a specific focus on the impact of political risk on leverage. Using a sample of Asia-Pacific REITs and listed property trusts, we find those firms with properties located in countries characterized by relatively high degrees of political risk, such as political instability, and/or greater uncertainty in the ability to repatriate and monetize profits from international investment activities, employ less debt than their counterparts operating in more politically stable environments. This core finding remains robust to alternative sample selection criteria including the division of the sample into …
Firm Location And Corporate Debt, Matteo Arena, Michael Dewally
Firm Location And Corporate Debt, Matteo Arena, Michael Dewally
Finance Faculty Research and Publications
This study examines the influence of a firm’s geographical location on corporate debt and provides evidence that the higher cost of collecting information on firms distant from urban areas has significant implications on a wide array of corporate debt characteristics. We find that rural firms face higher debt yield spreads and attract smaller and less prestigious bank syndicates than urban firms. Rural firms attempt to reduce their informational disadvantage by relying more on relationship banking. Our results on the effect of location on corporate debt are robust to the inclusion of an extensive set of firm and issue characteristics.
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew H. Roper
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew H. Roper
Finance Faculty Research and Publications
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 …