01870cas a2200313 a 4500 AALejournalIMF021449 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513568553 1018-5941 BD-DhAAL BD-DhAAL Mooij, Ruud A. At A Cost : The Real Effects of Thin Capitalization Rules / Ruud A. Mooij, Li Liu. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Thin capitalization rules (TCRs) aim to mitigate profit shifting by multinational corporations (MNCs) but, by raising the cost of capital for affected affiliates, can also negatively affect real investment. Exploiting unique panel data on multinational companies in 34 countries during 2006-2014, we estimate that the size of this adverse investment effect can be large, and dependent on the statutory corporate tax rate and the tightness of the safe-haven ratio. Negative investment effects are more pronounced for highly-levered firms for which TCRs are more likely to be binding. Mode of access: Internet Business Taxes and Subsidies imf Corporate Tax Policy imf Debt Shifting imf Multinational Investment imf Thin Capitalization Rules imf Liu, Li. IMF Working Papers; Working Paper ; No. 2021/023 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/023/001.2021.issue-023-en.xml IMF e-Library