Garry Twite

TL;DR: The authors found that firms that face higher repatriation tax burdens hold higher levels of cash, hold this cash abroad, and hold this money in affiliates that trigger high tax costs when repatriating earnings.

TL;DR: In this article, the authors examine how the institutional environment influences capital structure and debt maturity choices of firms in 39 developed and developing countries and find that firms in more corrupt countries and those with weaker laws tend to use more debt, especially short-term debt; explicit bankruptcy codes and deposit insurance are associated with higher leverage and more longterm debt.

TL;DR: In this paper, the authors developed and tested the hypothesis that the magnitude of US multinational cash holdings are, in part, a consequence of the tax costs associated with repatriating foreign income, and found that less financially constrained firms and those that are more technology intensive exhibit a higher sensitivity of affiliate cash holdings to repatriation tax burdens.

TL;DR: This paper examined the influence of institutional environment on capital structure and debt maturity choices by examining a cross-section of firms in 39 developed and developing countries and found that firms in countries that are viewed as more corrupt tend to use less equity and more debt, especially short-term debt, while firms operating within legal systems that provide better protection for financial claimants tend to have capital structures with more equity, and relatively more longterm debt.

TL;DR: This article examined the influence of institutional environment on capital structure and debt maturity choices by examining a cross-section of firms in 39 developed and developing countries and found that firms operating within legal systems that provide better protection for financial claimants tend to have capital structures with more equity, and relatively more long-term debt.