In this paper we address the magnitude of debt-related tax shields employing a proprietary data set of 56 German … tax shields under different financing policies, and the economic impact of limiting tax-deductible interest based on the … new tax code introduced in 2008 in Germany. We highlight that LBO tax shields are significant in terms of size, but there …

employee rights and firms' use of debt. This is because when employee rights are high, shareholders intend to use more debt … also document a negative relationship between creditor rights and firm debt ratio. When creditor rights are high, creditors … have more negotiation power to obtain good terms in debt contracting. If shareholders cannot get a favorable debt contract …

Corporate capital structure decisions are key determinants of firm performance. The agency theory suggests that debt … leverage is non-linearly (U-shaped) related to firm performance …

banks' leverage: banks close to the regulatory constraints do not change their leverage when tax rates change. This holds … true for both tax cuts and tax hikes. Among less constrained entities, the leverage of smaller banks is more responsive to … regional variations in the rate of the Italian tax on productive activities (IRAP) using administrative, confidential data on …

We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced … banks use excessive leverage to fund correlated, inefficiently risky loans. Limiting leverage and resolving both moral …

We develop a theory of optimal bank leverage in which the benefit of debt in inducing loan monitoring is balanced … banks use excessive leverage to fund correlated, inefficiently risky loans. Limiting leverage and resolving both moral …

case study. It is shown that various concerns related to high levels of debt are unfounded, mainly because the …, incentive-based regulation is not necessarily incompatible with high levels of debt. Finally, it is shown that there is still a …

unconstrained firms, results accord with the strategic debt model: leverage increases more in response to rises in corporate …Corporate leverage responds differently to employees' rights in bankruptcy depending on whether it is driven by … their impact on leverage, exploiting time-series, cross-country and firm-level variation in the data. For financially …

creditors to grant concessions outside formal bankruptcy. We study the joint impact of the two indexes on a firm's leverage … policy. We show that the two indexes have at most a statistically weak effect on the level of long-term debt. Instead, the … two indexes affect the distribution of long-term debt into bank debt, public debt and private placements. Bank debt …

marginal enforceability of debt contracts written at the parent and subsidiary level. The enforceability of creditor claims … depends not only on the legal regime but also on the size of the debt claims and the liquidation value of the firm's assets …