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 …

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 …

This study investigates the effect of a Turnover-based Corporate Income Tax (TbCIT) on corporate risk-taking. TbCIT is … a simplified presumptive tax levied on a firm's turnover and commonly applied to SMEs and hard-to-tax income. Using a … consequences of adopting simplified, turnover-based tax regimes. …

The theoretical literature suggests that when taking tax effects into account, debt ought to be preferable to equity …. However, there are no uniform predictions of the size of this tax benefit (tax shield) in comparison to an opposing increasing … cost of debt (especially insolvency costs). The vast body of empirical studies on the impact of taxation on capital …