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The Equity Trap, the Cost of Capital and the Firm´s Growth Path

Lindhe, Tobias; Södersten, Jan - 2006

This paper reconsiders Sinn's (1991) nucleus theory of the corporation by comparing two different regimes for the equity trap. In the first of these, all cash paid to the shareholders is taxed as dividends, in the second, shareholders are allowed a tax-free return of capital contributed through...

Persistent link: https://www.econbiz.de/10010321558

Economic Effects of Taxing Different Organizational Forms under a Dual Income Tax

Lindhe, Tobias; Södersten, Jan; Öberg, Ann - 2003

This paper analyzes the economic effects of different income splitting rules for closely held corporations and sole … proprietorships/partnerships in a tax system with a dual income tax. We conclude that the tax rules for closed corporations offer … for sole proprietorships/partnerships, because the income-splitting rules both neutralize the impact of the high labor …

Persistent link: https://www.econbiz.de/10010321596

Economic Effects of Taxing Closed Corporations under a Dual Income Tax

Lindhe, Tobias; Södersten, Jan; Öberg, Ann - 2001

Under the Nordic dual income tax system, the taxpayer's total tax bill depends not only on his total income but also on … the division of that income between capital income and labor income. This has created new room for tax avoidance …, especially for active owners of (closed) corporations. For that reason the Nordic governments have enacted special income …

Persistent link: https://www.econbiz.de/10010321734

Methods of Mitigating Double Taxation

Lindhe, Tobias - 2002

This paper presents a comprehensive overview of existing methods of mitigating double taxation of corporate income …

Persistent link: https://www.econbiz.de/10010321794

70 Years of US Corporate Profits

Barkai, Simcha; Benzell, Seth G. - 2018

Persistent link: https://www.econbiz.de/10013342549

Dividend taxation, share repurchases and the equity trap

Lindhe, Tobias; Södersten, Jan - 2009

This paper reconsiders the effects of dividend taxation. Particular attention is paid to the form of the 'equity trap', that is, the extent to which cash paid to the shareholders must be taxed as dividends. Our analysis shows that Sinn's (1991) criticism of the well-known King and Fullerton...

Persistent link: https://www.econbiz.de/10010321462

Mitigating shareholder taxation in small open economies?

Jacob, Martin; Södersten, Jan - 2012

This article reconsiders the role of dividend taxation and its effect on the cost of capital of small firms. Using a simple portfolio model for small open economies, we show that a decrease in dividend taxes on large companies unambiguously increases the required rate of return for small...

Persistent link: https://www.econbiz.de/10010321463

Dynamic cost-benefit analysis of large projects: The role of capital costs

Li, Chuan-Zhong; Löfgren, Karl-Gustaf - 2010

conventional income and consumer surplus measures, the rule also entails an extra term involving capital cost changes. …

Persistent link: https://www.econbiz.de/10010321466

Competition and the Cost of Debt

Valta, Philip - Swiss National Centre of Competence in Research North … - 2010

This paper empirically investigates how the intensity of product market competitionaffects the cost of debt. Using a large sample of loans to publicly traded US manufac-turing firms, I provide evidence that an intensification of product market competitionamong firms significantly...

Persistent link: https://www.econbiz.de/10009305077

Ratchet vs Blase Investors and Asset Markets

St-Amour, Pascal - Institut für Schweizerisches Bankwesen <Zürich>; … - 2004

This paper proposes a new wealth-dependent utility function for the inter-temporal consumption and portfolio problem, in which the subsistance (bliss) con-sumption level is a function of wealth. Ratchet effects obtain when higher wealth in-creases the subsistance consumption level; blas´...

Persistent link: https://www.econbiz.de/10005858307