Narrow search
Showing 1 - 10 of 360
Cover Image
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
Cover Image
Flexible prices and leverage
D'Acunto, Francesco; Liu, Ryan; Pflueger, Carolin; … - 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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
Debt shifting and transfer pricing in a volatile world
Comincioli, Nicola; Panteghini, Paolo; Vergalli, Sergio - 2020
In this article we introduce a stochastic model with a multinational company (MNC) that exploits tax avoidance practices. We focus on both transfer pricing (TP) and debt shifting (DS) activities and show how their optimal level is chosen by the shareholders. In addition, we perform an extensive...
Persistent link: https://www.econbiz.de/10012404654
Cover Image
Equilibrium theory of banks' capital structure
Gale, Douglas; Gottardi, Piero - 2017
We study an environment where the capital structure of banks and firms are jointly determined in equilibrium, so as to balance the benefits of the provision of liquidity services by bank deposits with the costs of bankruptcy. The risk in the assets held by firms and banks is determined by the...
Persistent link: https://www.econbiz.de/10011688427
Cover Image
Business tax policy under default risk
Comincioli, Nicola; Vergalli, Sergio; Panteghini, Paolo - 2019
In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax...
Persistent link: https://www.econbiz.de/10012024508
Cover Image
Thin capitalization rules and multinational firm capital structure
Blouin, Jennifer L.; Huizinga, Harry; Laeven, Luc; … - 2014
This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...
Persistent link: https://www.econbiz.de/10010256736
Cover Image
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