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The relationship between leverage and profitability : the role of tax depreciation allowances

Koussis, Nicos; Menoncin, Francesco; Panteghini, Paolo - 2025

allowances on leverage. We show that TDA act as a complement to debt leverage, generating a negative leverage-profitability …

Persistent link: https://www.econbiz.de/10015414038

Optimal firm's dividend and capital structure for mean reverting profitability

Menoncin, Francesco; Panteghini, Paolo; Regis, Luca - 2021

optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA …) of the _rm. According to the empirical evidence, we let profitability follow a mean reverting process. The problem is …

Persistent link: https://www.econbiz.de/10012668498

On the capital structure of foreign subsidiaries : evidence from a panel data quantile regression model

Miniaci, Raffaele; Panteghini, Paolo - 2021

This paper studies how variations in tax rates and profitability affect the (unconditional) quantiles of the … of taxes and profitability on subsidiaries' financial choices varies across different quantiles of the (skewed …, profitability (proxied by ROA) has either a negative or null impact, depending on the leverage ratio and the tax rate used (namely …

Persistent link: https://www.econbiz.de/10012514927

Flexible prices and leverage

D'Acunto, Francesco; Liu, Ryan; Pflueger, Carolin E.; … - 2017

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across 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...

Persistent link: https://www.econbiz.de/10011597779

A Q-theory of banks

Begenau, Juliane; Bigio, Saki; Majerovitz, Jeremy; … - 2021

market equity values diverge, especially during crises; (2) Tobin's Q predicts future bank profitability; (3) neither book …

Persistent link: https://www.econbiz.de/10012649212

Low inflation : high default risk AND high equity valuations

Bhamra, Harjoat Singh; Dorion, Christian; Jeanneret, … - 2018

coupons and sticky profitability. Taken together, these two frictions result in higher real equity prices and credit spreads …

Persistent link: https://www.econbiz.de/10011941263

The commitment role of equity financing

Fahn, Matthias; Merlo, Valeria; Wamser, Georg - 2014

Existing theories of a firm’s optimal capital structure seem to fail in explaining why many healthy and profitable firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and the bankruptcy risk low. This holds in particular for...

Persistent link: https://www.econbiz.de/10010366170

Finance, control, and profitability : the influence of German banks

Chirinko, Robert S.; Elston, Julie Ann - 2003

problems? [Yes]; 3) do bank influenced firms have higher profitability? [No]. Coupled with results about the control …

Persistent link: https://www.econbiz.de/10011511071

Neutral taxation of shareholder income? : corporate responses to an announced dividend tax

Alstadsæter, Annette; Fjaerli, Erik - 2009

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 large panel of non-listed corporations, with a surge of...

Persistent link: https://www.econbiz.de/10003806745

Investor taxation, firm heterogeneity and capital structure choice

Haring, Magdalena; Niemann, Rainer; Rünger, Silke - 2016

We analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific payout policy on firms' capital structure choice. Our analysis is based on data for 10,983 firms from 13 Central and Eastern European (CEE) countries over the time period 2002-2012. Our results...

Persistent link: https://www.econbiz.de/10011541065