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global games methodologies. Contingent convertible bonds are meant to act as a bail-in mechanism for banks, where CoCo debt …
Persistent link: https://www.econbiz.de/10012161027
Cryptocurrencies are often thought to operate out of the reach of national regulation, but in fact their valuations, transaction volumes and user bases react substantially to news about regulatory actions. The impact depends on the specific regulatory category to which the news relates: events...
Persistent link: https://www.econbiz.de/10012205633
’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the …
Persistent link: https://www.econbiz.de/10010506334
The corporate finance literature documents that managers tend to overinvest into physical assets. A number of theoretical contributions have aimed to explain this stylized fact, most of them focussing on a fundamental agency problem between shareholders and managers. The present paper shows that...
Persistent link: https://www.econbiz.de/10010469958
regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased … set of local exchange carriers-LECs in the U.S. and investigate Granger causality between changes in long-term debt (NDEBT … uni-directional causality from INV to NDEBT and therefore is, to a large extent, consistent with a leverage effect and …
Persistent link: https://www.econbiz.de/10003854388
This survey reviews the literature on the political economy of financial structure, broadly defined to include the size of capital markets and banking systems as well as the distribution of access to external finance across firms.The theoretical literature on the institutional basis for...
Persistent link: https://www.econbiz.de/10011374399
Cash holdings at the onset of a financial crisis are a key determinant of investment by SMEs not only during the crisis but also during the recovery period. Cash-rich SMEs could maintain their capital stock during the global financial crisis, while cash-poor rivals reduced theirs. This gave...
Persistent link: https://www.econbiz.de/10012509557
We examine how investor-level tax incentives affect financing for start-ups using the introduction of a generous tax … deduction for qualified angel and VC investment in China as a quasi-natural experiment. We find that the tax incentive increases … funding for eligible start-ups, with stronger responses from larger and more experienced investors. The tax incentive leads to …
Persistent link: https://www.econbiz.de/10014564279
on financially constrained firms; (ii) ACE and cashflow tax systems, which are investment neutral in the neoclassical … banks, investment is subject to double moral hazard and the timing of tax payments becomes important. The ACE system gives … tax relief at the return stage and provides better incentives than a cash-flow tax which gives tax relief upfront …
Persistent link: https://www.econbiz.de/10003926261
-up investment decisions. We find that, although tax rates are usually higher than the developed countries’ ones, taxation has an …
Persistent link: https://www.econbiz.de/10014502465