corporate tax reform in Germany. The financial leverage is measured by the ratio of long-term debt to total capital. Endogeneity … tax rate on corporate leverage: on average, an increase of the tax rate by 10 percent would increase the financial … leverage by about 5 percent. We also find that the debt ratio is less responsive for small corporations and for corporations …

also incorrect to translate higher taxes paid by banks to a social cost. Policies that subsidize debt and indirectly … should be given directly and not in ways that encourage leverage. Finally, suggestions that high leverage serves a necessary …, and that high leverage is not necessary for banks to perform all their socially valuable functions, including lending …

perquisites that yield private benefits). The privately optimal level of bank leverage is neither too low nor too high: It … balances efficiently the market discipline imposed by owners of risky debt on managerial rent seeking against the asset … substitution induced at high levels of leverage. However, when correlated bank failures can impose significant social costs …

result of debt overhang, shareholders have incentives to resist reductions in leverage that make the remaining debt safer … combined value of the firm to shareholders and creditors. Moreover, debt overhang creates an "addiction" to leverage through a …We analyze shareholders' incentives to change the leverage of a firm that has already borrowed substantially. As a …

capital to a market based leverage ratio of 3%, EUR 84 billion of extra capital would be needed for the largest 60 banks. At … the bank level, the top tertile of well-capitalised banks (with a market based leverage ratio well above 4%) continues …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … take on high leverage safely; supply chain effects compel them to do so. Firms with low leverage also arise naturally, as … framework underlie our model, we can quantify the impact capital regulation and other government interventions have on leverage …

.e. finding the right balance between equity financing and debt. Taggert (1981) shows that rate-of-return regulation creates an …) find that the firm chooses its equity and debt in order to affect the outcome of the regulatory process. As a hybrid model … where bankruptcy is merely a threat, it may be optimal to rely on extreme strategies solely financing with equity or debt. …

corporate tax reform in Germany. The financial leverage is measured by the ratio of long-term debt to total capital. Endogeneity …. -- Financial leverage ; financial structure ; debt ratio ; corporate income taxation ; corporate tax return data … tax rate on corporate leverage: on average, an increase of the tax rate by 10 percent would increase the financial …

-remote entities. This paper shows how HCs should optimally determine their multi-tier financial leverage based on a novel debt …