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 …

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. …

negatively related to credit spreads. Particularly during the financial crisis of 2007-09 and the subsequent European debt crisis …

about even though flows of other sources of financing, such as equity and debt securities, expand strongly and act as a …

Broker-dealer leverage has recently proven to be strongly procyclical, exhibiting impressive explanatory power for a … balance-sheet indicators for asset pricing. In particular, leverage shows a procyclical behavior with a positive price of risk …. Moreover, high leverage coincides with high asset prices, thereby forecasting lower future returns. …