International Debt and Special Purpose Entities: Evidence from Ireland
30 Pages Posted: 30 Jul 2019
Date Written: July, 2019
This paper examines international debt issuance through Irish-resident Special Purpose Entities (SPEs). Using a unique new dataset covering the population of Irish-resident SPEs reporting to the Central Bank of Ireland over the period 2005-2017, we identify cross-country debt financing links channelled through SPEs. The empirical analysis suggests that tax optimisation is an important motive, particularly for sponsors of Irish-resident securitisation vehicles, while investor protection and financial development are important additional considerations for sponsors of non-securitisation vehicles.
Keywords: international finance, special purpose entities (SPEs)
JEL Classification: F36, G23, G15
Suggested Citation: Suggested Citation