Purpose: This paper aims to investigate whether the level of social capital of the region in which a firm is headquartered affects its tax avoidance activities. Social capital can be defined as the mutual trust in society and literature shows that firms headquartered in high social capital...

In this paper, we develop and test the hypothesis that tax repatriation costs increase the uncertainty embedded in cash holdings. The intuition behind our empirical prediction relies on the notion that tax repatriation costs are a strong indication that part of the cash is not available to...

This paper investigates whether the fair value accounting for available-for-sale (AfS) securities and the capital regulation permit to shift risk from shareholders to creditors. Using a sample of 5,510 firm-year observations generated from 754 unique U.S. banks from 1998 to 2013, we find that...

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 significantly expanded the exemptions from the normal workings of the U.S. Bankruptcy Code. Using a large sample of U.S. banks we study investors' reaction to news about the promulgation of the BAPCPA repo ‘safe...