multinational enterprise regarding the cross border distribution of its investment and the choice of its financing behavior. We …

-verifiable managerial effort enhances taxable profits. We show that investment changes following a rise in dividend taxes might not be … investment response, in contrast to insights from previous literature. We provide a testable implication to infer the mode of … investment finance from investment responses. Furthermore, we show that imposing income tax on managerial incentive pay is …

In the absence of financing frictions, profit taxes reduce investment by their effect on the user cost of capital. With … finance constraints due to moral hazard, investment becomes sensitive to cash-flow and own equity of firms. We propose a … corporate finance model of investment and derive three central results: (i) Even small taxes impose first order welfare losses …

arises here between assumptions made in some areas of tax theory and the actual investment analyses conducted by the … the investment decisions made by the companies, while acknowledging for the fact that the companies may report … strategically to the government. An important issue is how tax deductions are to be treated in investment analysis. A discrepancy …