From a tax planner's point of view, it is often attractive to choose debt over equity financing. As this has led to an … increase of debt financing of corporations, many countries have introduced thin capitalization rules to secure their tax … revenues. We analyze the influence of section 8a of the German Corporate Tax Code on corporate capital structure decisions …

approximately 2% of firm value for a firm whose credit rating falls from AA to BBB, comparable to the magnitude of debt tax benefits …

The Organisation for Economic Co-Operation and Development (OECD) recently proposed an interest barrier to fight tax … their leverage by 4.7 percentage points more than non-affected companies. The effects are stronger among non …

The Organisation for Economic Co-Operation and Development (OECD) recently proposed an interest barrier to fight tax … their leverage by 4.7 percentage points more than non-affected companies. The effects are stronger among non …

This study examines whether country-specific risk attenuates the association between tax policies and corporate risk …-taking. We define country-specific risk (political and fiscal budget risk) as taxpayer's risk that tax refunds on losses cannot … corporate tax rates and 49 changes in loss offset rules. We investigate whether government risk-sharing via loss offset rules …

effectiveness of tax policy tools that aim to encourage corporate risk-taking. Exploiting a cross-country panel, we predict and find … that the effectiveness of loss offset rules and tax rate changes is fully attenuated for firms located in high …-risk countries. We document the attenuating effect of country risk is more pronounced in high-tax countries or when countries …