The tax structure of interest rates, an observed downward sloping relationship between tax rates implied by relative municipal and taxable yields and time to maturity, remains a longstanding anomaly in financial economics. A recently published theory suggests that under simple conditions, in a...

We examine the Hou and Moskowitz (2005) parsimonious measure of friction, which proxies investors' difficulty in incorporating market-wide information into security prices. Our comparison of REITs and matched non-REIT stocks shows a statistical and economically higher level of friction for REIT...

We find evidence suggesting that corporate lobbying for tax purposes over the period 1999-2009 is one method by which firms managed corporate taxes. Furthermore, tax management strategies employed by these politically active firms were valued by shareholders. Firms lobbying on tax issues have...