Where Do Firms Issue Debt? An Empirical Analysis of Issuer Location and Regulatory Competition in Europe


Eidenmüller, Horst ; Engert, Andreas ; Hornuf, Lars



DOI: https://doi.org/10.2139/ssrn.1678442
URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_i...
Additional URL: http://www.ecgi.org/wp/wp.php?series=Finance
Document Type: Working paper
Year of publication: 2010
The title of a journal, publication series: ECGI Finance Working Paper
Volume: 292
Place of publication: Bruxelles
Publishing house: European Corp. Governance Inst.
Publication language: English
Institution: School of Law and Economics > Bürgerl. Recht, Deutsches u. Europ. Wirtschaftsrecht u. Unternehmenssteuerrecht (Engert 2010-19)
Subject: 340 Law
Abstract: In this article, we study the choice of issuer location and regulatory competition in the European corporate debt market. We find that, in absolute terms, Germany has by far the highest outflow of debt issues, while the Netherlands, the UK, Luxembourg and Ireland see the most inflows (in that order). We use a panel gravity model to investigate country specific factors attracting foreign subsidiaries as issuer. The data clearly support the prediction that the locational choice is positively influenced by a low withholding tax rate. There is also some evidence that corporate tax rates play a role. We do not find support for creditor protection rules in bankruptcy as a driver of cross-border debt securities issues. Hence, countries who wish to attract issuers are well-advised to reduce their withholding tax rates – creditor rights seem not to matter.

Dieser Eintrag ist Teil der Universitätsbibliographie.




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Eidenmüller, Horst ; Engert, Andreas ; Hornuf, Lars (2010) Where Do Firms Issue Debt? An Empirical Analysis of Issuer Location and Regulatory Competition in Europe. ECGI Finance Working Paper Bruxelles 292 [Working paper]


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