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 …

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 …

We examine the capital market reaction to the announcement of the European Union (EU) to introduce a public tax country … extended information environment or more sustainable corporate tax strategies. In cross-sectional tests, we find that the … average investor reaction is more pronounced for firms with low effective book tax rates, indicating that reputational …

to bolster tax transparency requirements for multinational enterprises (MNEs), with the objective of reducing disparities … in international tax planning potential when compared to smaller, domestic firms. However, the efficacy of public CbCR in …