This paper develops and tests the hypothesis that accounting rules mitigate the impact of tax policy on firm investment … flows and accounting profits. The cost of capital and the impact of tax incentives for investment both depend on the weight … affect accounting profits. Investment tax credits, which do affect accounting profits, have more impact on investment than …

We investigate how tax loss offset restrictions affect an investor's evaluation of risky investments under bounded … rationality. We analytically identify behavioral tax effects for different levels of loss offset restrictions, tax rate and … prospect theoretical biases (loss aversion, probability weighting and reference dependence) and find tax loss offset …

We investigate how tax loss offset restrictions affect an investor’s evaluation of risky investments under bounded … rationality. We analytically identify behavioral tax effects for different levels of loss offset restrictions, tax rate and … prospect theoretical biases (loss aversion, probability weighting and reference dependence) and find tax loss offset …

In Germany, the tax loss carry-forward of corporations significantly increased over the last decade. At the same time … only a small percentage of losses have been effectively offset. One potential reason for this puzzle is that stricter loss … find that the restrictions on the use of tax loss carry-back are rather ineffective while the newly introduced minimum …

This paper examines the asset write-off behavior of loss firms in response to tax rule changes. In particular, we … investigate two simultaneous changes in tax loss carryforward offsetting in opposite directions in Germany and France … of the firm value. We hypothesize and find that following changes in tax loss carryforward offsetting rules, loss firms …

investment purposes. Our empirical findings document that (1) an unrestricted loss carryforward and an unrestricted loss …We analyze to what extent more generous tax loss offset regulations are associated with a weaker decline and stronger … recovery of firm stock prices during economic crises. We argue that an unrestricted loss carryforward and, particularly, an …

-border loss offset inherent to formula apportionment. In the medium run, in which only firms can adjust their strategies, tax …, contrary to output factors, input factors provide an insurance against tax revenue shortfalls due to loss-making affiliates. …

In Germany, the tax loss carry-forward of corporations significantly increased over the last decade. At the same time … puzzle is that stricter loss offset restrictions have been introduced in recent years. I use a newly developed micro …, distributional breakdowns concerning the amounts of tax loss carry-forward and the effects of loss offset restrictions are provided …