Prior studies have shown limited impact of the US bonus depreciation rules on firm investments during economic downturns. In this article we study the effects of a set of more flexible rules – discretionary tax depreciation (DTD) – introduced in the Netherlands during the 2009-2011 economic...

The ability to reduce current and future taxable income with prior years' taxable losses is highly relevant for explaining firms' effective and marginal tax rates. Compustat data on the tax loss carryforward (TLCF) are, however, often missing. We propose a method to impute estimated values for...

Firms typically use a ‘one-size-fits-all' (OSFA) compensation contract that specifies a common formulaic relation between performance and compensation (i.e., a performance bonus) for nonexecutive managers in similar jobs. However, a contract that is appropriate on average, may be suboptimal...