Debt, taxes, and international equilibrium

摘要: Abstract This paper employs an extended Miller model to analyze capital structure decisions of individual firms in a two-country setting. equilibria are generally not consistent with international equilibrium if the tax subsidy debt differs across countries. The most obvious reason for differential subsidies is differences between national corporate rates. We also identify inflation rates differ For both cases we examine adjustment process from without and barriers investment. derive relationship yields on equity two countries discuss Fisher hypothesis that real returns do depend upon world.