We extend Myers' Adjusted Present Value method (Myers, 1974) and modify Modigliani and Miller's capital structure propositions (MM 1958, 1963) by adding government as the third major financial stakeholder. Stockholders, bondholders and government (federal and state) each possess a stake in the...

We extend Modigliani and Miller's capital structure models by adding government as the third major financial stakeholder. Government, through collection of taxes, joins equityholders and debtholders as recipients of the firm's net operating income. Assuming no new investment opportunities, we...

We extend Modigliani and Miller's value conserving capital structure model by adding government as the third major financial stakeholder, through collection of taxes. We demonstrate that the burden of corporate taxation eventually falls on shareowners. By shifting the tax incidence to...

We examine whether corporate tax avoidance impacts the investment decisions of socially responsible investment (SRI) mutual funds. After controlling for corporate social responsibility (CSR) constructs, we find that investment by SRI funds is positively associated with paying corporate taxes....

This paper analyzes the performance of index-based portfolios across developed, emerging, and frontier markets. Besides considering stocks and bonds for portfolio construction, we investigate how investment opportunity sets are enlarged when credit default swaps (CDSs) are added into portfolios...