Universität zu Köln

Merz, Julia, Overesch, Michael ORCID: 0000-0002-1531-0357 and Wamser, Georg (2017). The location of financial sector FDI: Tax and regulation policy. Journal of banking and finance, 78. 14 - 27. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1872-6372

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Abstract

This paper analyzes how corporate taxation and regulatory requirements affect the location of financial sector FDI. We use novel information on new financial services entities established by multinational firms in 83 host countries. We find a negative effect of host country taxes on the probability of choosing a particular host location. We can also confirm a significant influence of the regulatory environment. For example, stricter (equity) capital requirements negatively affect location probabilities. Our empirical approach allows us to provide new insight in how a policy measure of a given country affects other countries by estimating cross-country tax and regulation elasticities. (C) 2017 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Merz, Julia UNSPECIFIED UNSPECIFIED UNSPECIFIED Overesch, Michael UNSPECIFIED orcid.org/0000-0002-1531-0357 UNSPECIFIED Wamser, Georg UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-232991
DOI:	10.1016/j.jbankfin.2017.01.001
Journal or Publication Title:	Journal of banking and finance
Volume:	78
Page Range:	14 - 27
Date:	2017
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1872-6372
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	Management and auxiliary services
Uncontrolled Keywords:	Keywords Language FOREIGN DIRECT-INVESTMENT; BORDER BANK MERGERS; INTERNATIONAL TAXATION; INFORMATION; CHOICE; IMPACT; ENTRY; PANEL; RISK Multiple languages Business, Finance; Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/23299