This paper studies optimal monetary policy under dynamic debt deleveraging once the zero bound is binding. Unlike the …

allowed firms to retain relatively constant debt equity ratios in the past five years despite strong equity markets. Firms … have chosen to absorb equity and issue debt, roughly holding leverage constant, and have thus saved large amounts of taxes …

for all investors and hence their preferences are not unanimous. In addition, costs associated with debt induce a tendency … for lower cost firms to issue a larger proportion of total corporate debt …

This paper presents a test for the existence of debt clienteles in which the latter are represented by progressive … personal tax brackets. The test generates some evidence consistent with the implication of debt clientele theory that, over … time, firms' debt ratios should vary with the relative tax incentives which their investors have to hold debt. Changes in …

Past attempts to measure the impact of taxes on corporate debt policy have focused on larger firms. Given that the top … corporations, to compare the debt policies of firms of different sizes. Given the progressivity in the corporate tax schedule … results suggest that taxes have had a strong and statistically significant effect on debt levels. In particular, the …

research: equity policy, debt-equity decisions, and choices regarding ownership structure and organizational form. The …