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Owners of private companies often invest a substantial share of their net worth in one company, which exposes them to idiosyncratic risk. For US companies we investigate whether owners require compensation for lack of diversification in the form of higher returns to equity. Exposure to...
Persistent link: https://www.econbiz.de/10003888739
Owners of private companies often invest a substantial share of their net worth in one company, which exposes them to idiosyncratic risk. For US companies we investigate whether owners require compensation for lack of diversification in the form of higher returns to equity. Exposure to...
Persistent link: https://www.econbiz.de/10003670939
Persistent link: https://www.econbiz.de/10003877137
Owners of private companies often invest a substantial share of their net worth in one company, which exposes them to idiosyncratic risk. For US companies we investigate whether owners require compensation for lack of diversification in the form of higher returns to equity. Exposure to...
Persistent link: https://www.econbiz.de/10003922530
stripping rule ; debt ratio ; profitability ; investment …' capital structure, investment and profitability. The identification of the causal effects is based on the escape clauses in … to avoid the limited deductibility of interest expenses: They either decrease their debt ratio or split their assets to …
Persistent link: https://www.econbiz.de/10009579254
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-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes …
Persistent link: https://www.econbiz.de/10012921411