This paper investigates the extent to which loss-offset constraints affect corporate tax incentives. Using data … sector had tax loss carryforwards. When weighted by their market value, however, these firms account for less than three … percent of this sector, suggesting that loss carryforwards are concentrated among small firms and affect relatively few large …

factors, including resale of assets (churning), risk, pure profits, debt finance and arbitrage, and choice of organizational …

We investigate how the length of the net operating loss carryback period affects corporate liquidity and marginal tax … financial industries. Extending the carryback period would increase the marginal tax rate of loss firms by more than 200 basis … points on average, which all else equal would lead corporations to use an additional $8 ($10) billion of debt and reduce tax …

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 …