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

stressed in the literature on the use of subordinated debt, but also from the asset side. This will be particularly true if …

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

rating agencies. We also document for the first time that firms responded to tax incentives to use debt during the Depression … era, but that the extra debt used in response to this tax-driven "debt bias" did not contribute significantly to the … 1928 to 1938. We find that firms with more debt and lower bond ratings in 1928 became financially distressed more …

points on average, which all else equal would lead corporations to use an additional $8 ($10) billion of debt and reduce tax …"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 20 basis …