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 …

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 …

We provide new estimates of the wage costs of firms' debt. Our empirical approach exploits within-firm geographical … sample of public firms. We find that, following an increase in firm leverage, workers with higher unemployment costs … that a 10 percentage point increase in leverage increases wage compensation for the median worker by 1.9% and total firm …

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 …