corporations' debt-equity ratios. The debt ratios drop sharply after the implementation of the reform. -- Neutral dividend tax …The introduction of the 2006 Norwegian shareholder income tax was announced in advance, and it increased top marginal … tax rates on individual dividend income from zero to 28 percent. We document strong timing effects on dividend payout on a …

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 …

) distribution of leverage. In particular, when the leverage ratio is low enough, an increase in a subsidiary's tax rate stimulates …’s tax rate has a positive impact on a subsidiary’s leverage ratio only if its starting leverage ratio is low enough. Finally …, profitability (proxied by ROA) has either a negative or null impact, depending on the leverage ratio and the tax rate used (namely …

) 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 …

Swedish firms show that firms borrowing from the program have higher rates of debt growth, investment spending, and employment …