-border loss offset inherent to formula apportionment. In the medium run, in which only firms can adjust their strategies, tax …, contrary to output factors, input factors provide an insurance against tax revenue shortfalls due to loss-making affiliates. …

We investigate how tax loss offset restrictions affect an investor's evaluation of risky investments under bounded … rationality. We analytically identify behavioral tax effects for different levels of loss offset restrictions, tax rate and … prospect theoretical biases (loss aversion, probability weighting and reference dependence) and find tax loss offset …

We investigate how tax loss offset restrictions affect an investor’s evaluation of risky investments under bounded … rationality. We analytically identify behavioral tax effects for different levels of loss offset restrictions, tax rate and … prospect theoretical biases (loss aversion, probability weighting and reference dependence) and find tax loss offset …

(INE) has an influence on tax neutrality, i.e., if it helps reducing debt financing advantage over equity. The paper also …, comparing three sources of finance (debt, retained earnings and new equity) and three types of assets: machinery, buildings and … inventories. Our simulations show that INE reduces the cost of capital for new equity by 40% but it cannot offset the debt …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … hinges on firm-specific expectations of future loss recovery. …