This paper examines the impact of capital gains taxation on firms’ investment and financing decisions. We develop a real … options model in which the timing of investment, the decision to default, and the firm’s capital structure are endogenouslyand … jointly determined. Our analysis shows that capital gains taxes cause large distortions in firms’ policy choices. First, by …

the paper, capital structure plays the role of a commitment device, and determines the outcome of the acquisition contest …

differentiating the equity issues according to the theories that explain capital structure choices. From a sample of 172 equity … improve the capital structure and it is not directly related to a change in the assets structure. Furthermore, the … market reaction to other offerings announcements is related to optimal capital structure theories. In terms of informational …

This paper studies the corporate policy distortions caused by realization-based capital gains taxation at the personal … level in a dynamic trade-off theory model. The lock-in effect of embedded capital gains creates severe conflicts of interest … offsets weakens as investors reset their basis. Capital gains taxation also creates incentives to time equity issues. Firms …

dynamic capital structure choice. We begin by observing that when cash flows depend on current economic conditions, there will … size of capital structure changes, and debt capacity. …

This model adds to the standard neoclassical model of business fluctuations by introducing a more realistic capital … are mostly absorbed by debt and not dividends. The capital structure deteriorates first but then improves after a few …

Die Kapitalstruktur, insbesondere das Finanzierungsverhältnis Fremdkapital/Eigenkapital (Financial Leverage), hat einen …

economies. Our basic model is a dynamic open economy model with a tradeable good produced with capital and a country … through a phase of financial development may become more unstable in the short run. Similarly, full capital account … capital inflows are followed by collapse with capital outflows. On the other hand, foreign direct investment does not …