Using a production-based structural model, calibrated with data for the period 2001-2017, we find that the cap on the deduction of interest expense enshrined in the Tax Cuts and Jobs Act of 2017 reduces the net tax benefits of debt differentially across industries by 1% to 2.2% of un-levered...

Prior research has documented anomalous profits as high as 9% from participating in stock repurchase tender offers. The trading strategy is to buy shares in the market just before offer expiration and tender; it involves a trading horizon of just a few days. The large profits given a short...