Dallari, Pietro; End, Nicolas; Miryugin, Fedor; Tieman, … - 2018
This paper investigates the role of tax incentives towards debt finance in the buildup of leverage in the nonfinancial … corporate (NFC) sector, using a large firm-level dataset. We find that so-called debt bias is a significant driver of leverage … flow, and capital intensity. We conclude that leveling the playing field between debt and equity finance through tax policy …