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 …

rate does a better job of explaining financial statement debt ratios than does the analogous tax return variable and …"We document that simulated corporate marginal tax rates based on financial statement data (Shevlin 1990 and Graham … 1996a) are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be …

investment, debt usage, and firm value. During the 1930-1938 Depression era, when the corporate sector was shocked by an …) and use more debt during the 1930s. We document similar effects for the number of outside directors on the board. Finally …