global games methodologies. Contingent convertible bonds are meant to act as a bail-in mechanism for banks, where CoCo debt …

firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and …. Debt, on the other hand, has an adverse effect on the enforceability of these arrangements because too much debt increases … creditors. Our analysis provides an explanation for why some firms only use little debt financing. Predictions made by our …

) countries over the time period 2002-2012. Our results show a significant impact of the net tax benefit of debt on the debt ratio … of firms. Ignoring firm heterogeneity, an increase in the net tax benefit of debt by 10 percentage points leads to an … increase in the net tax benefit of debt of 10 percentage points leads to an increase in the debt ratio of only 1.27 percentage …

outside the Netherlands, Dutch firms significantly reduced their leverage following the passage of the reform. Our findings … are consistent with the view that corporate governance improvements reduce the value of debt as a disciplining device. …

’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the …

’s optimal security-issuance choice trades off the flexibilitybenefit of equity against the now-familiar debt tax shield, and the … financed. Debt offers little flexibility relativeto equity. However, the flexibility offered by equity depends on the extent to …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …

Tax provisions favoring corporate debt over equity finance ("debt bias") are widely recognized as a risk to financial … amount, affect corporate debt ratios and mitigate financial stability risk. We find that rules targeted at related party … borrowing (the majority of today's rules) have no significant impact on debt bias - which relates to third-party borrowing. Also …

firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky …-price firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than exible …

the parent and the affiliates; (iv) both parental debt and external debt increase when the tax rate increases, all else … tax jurisdiction. This paper discusses the link between capital structure choices and tax planning motives in … multinational groups. We model the trade-off between the use of external debt, parental debt and an internal bank. We test the …