Preferential treatment of capital gains may enable individuals who have some control over the form of their compensation to decrease wages and increase non-wage compensation while maintaining their current level of consumption and liquidity. This effect is likely to be most pronounced for...

Ownership takeovers often follow complex strategies where the control of the target firm is acquired through a sequence of independent contracts. Based on this observation, we develop a novel theoretical model wherein the acquiring firm decides on the number of steps towards the full ownership...