) distribution of leverage. In particular, when the leverage ratio is low enough, an increase in a subsidiary's tax rate stimulates …’s tax rate has a positive impact on a subsidiary’s leverage ratio only if its starting leverage ratio is low enough. Finally …, profitability (proxied by ROA) has either a negative or null impact, depending on the leverage ratio and the tax rate used (namely …

In this article we use a stochastic model with one representative firm to study business tax policy under default risk …. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and … default costs if its objective function is welfare (tax revenue). …

In this article we use a stochastic model with one representative firm to study business tax policy under default risk …. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and … default costs if its objective function is welfare (tax revenue). …

tax rate differential; finally, the cost of DS has always a relevant impact on both MNC’s value and leverage. …In this article we introduce a stochastic model with a multinational company (MNC) that exploits tax avoidance … practices. We focus on both transfer pricing (TP) and debt shifting (DS) activities and show how their optimal level is chosen …

pricing and debt shifting, with the purpose of incrementing its value, intended as the sum of equity and debt. We compute, in … a stochastic environment and under default risk, the optimal shares of profit and debt to be shifted and show how they … quantify the benefit arising from the exploitation of tax avoidance practices and study the corresponding impact on MNC …

solved in a quasi-explicit form by computing both the optimal dividend and the optimal debt. Finally, we calibrate the model … particular, our results show that the optimal dividend is smooth over time and that leverage is predominantly constant over time …

investment project, the tax revenue generated and the welfare are influenced by financial instability. Then, a comparison of … welfare effects of tax policy on start-ups, mature and obliged firms is provided. This comparison provides policy-makers a … tool to shape their tax systems according to the characteristics of their firms. All presented analyses are supported by …

This short article studies the tax effects on a start-up investment decision under uncertainty. Since the … deadweight loss (namely, the ratio between the welfare loss and tax revenue) ranges from 25 to 32%, whereas mature firms face a …

-up investment decisions. We find that, although tax rates are usually higher than the developed countries’ ones, taxation has an …