tax benefit of debt (net and gross of investor taxes) and the debt ratio. A 10% increase in the net (gross) marginal tax … also be identified in a partial adjustment model. -- Debt ; capital structure ; marginal tax rate ; corporate taxes … simulate marginal tax rates, we find a statistically and economically significant positive relationship between the marginal …

This paper investigates the impact of an Allowance for Corporate Equity (ACE) on the expected tax revenues and on the … international tax competition. Beginning with an analysis of the relation between the rate of return on equity and the interest rate … moderate decline in tax revenues. Focusing profit shifting via transfer prices, the ACE has no positive effect. Only a cut of …

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

From a tax planner's point of view, it is often attractive to choose debt over equity financing. As this has led to an … increase of debt financing of corporations, many countries have introduced thin capitalization rules to secure their tax … revenues. We analyze the influence of section 8a of the German Corporate Tax Code on corporate capital structure decisions …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of …. Tighter leverage requirements, on the other hand, increase lending, preserve bank charter value and incentives to accumulate …

the risk of default outweighs the cost advantages of debt financing. In this setting, banks with lower monitoring costs …

activities. For this purpose, I propose a novel measure of synthetic leverage, which can be estimated based on publicly available … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

incentives of bank levies to reduce leverage turn insignificant. Thus, bank levies can counteract the debt bias of taxation only …Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes … funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending …

market financing, debt or equity financing - seems to be particularly harmful or beneficial for growth. …