Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2015/29:
The Tax Sensitivity of Debt in Multinationals: A Review

Guttorm Schjelderup ()

Abstract: The OECD in its BEPS action plan 4 addresses tax base erosion by profit shifting through the use of tax deductible interest payments. Their main concern is interest deductions between outbound and inbound investment by groups. Studies of multinational firms show that the tax sensitivity of debt is more modest than what one would expect given the incentives for profit shifting. The purpose of this paper is to review existing literature and to add new knowledge on multinational firm behavior that pertains to the use of debt.

Keywords: Corporate taxation; multinationals; capital structure; international debt-shifting; tax avoidance; (follow links to similar papers)

JEL-Codes: F23; G32; H25; (follow links to similar papers)

16 pages, October 30, 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

2359992    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Stein Fossen ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:nhhfms:2015_029 This page was generated on 2015-11-10 14:08:54