Similar Search Results

Corporate taxation and financial strategies under asymmetric information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010347029

Optimal debt bias in corporate income taxation

Simon, Jenny - 2015

. For risk-averse entrepreneurs, equity generates more surplus than debt, because it provides financing and insurance. A … government seeking to extract surplus from entrepreneurs would naturally tax equity-generated income more than debt …-generated income. I also establish a less obvious reason why the government might want to extract surplus from entrepreneurs. It is …

Persistent link: https://www.econbiz.de/10011350162

Cash-flow business taxation revisited : bankruptcy, risk aversion and asymmetric information

Boadway, Robin W.; Sato, Motohiro; Tremblay, Jean-François - 2015

Persistent link: https://www.econbiz.de/10011388005

Cash-flow business taxation revisited : bankruptcy, risk aversion and asymmetric information

Boadway, Robin W.; Sato, Motohiro; Tremblay, Jean-François - 2016

It is well-known that cash-flow business taxes with full loss-offset, and their present-value equivalents, are neutral with respect to firms' investment decisions when firms are riskneutral and there are no distortions. We study the effects of cash-flow business taxation when there is bankruptcy...

Persistent link: https://www.econbiz.de/10011572404