We examine the relation between corporate cash holdings and tax net operating loss carryforwards (NOLs). Prior … literature demonstrates that firms should distribute cash to shareholders, rather than retain the cash and generate passive … the shareholder's – as in the case of an NOL firm – theory also shows that the firm should retain cash and invest on the …

Prior to 2018, U.S. repatriation taxes motivated companies to retain cash offshore. Using confidential jurisdiction …-specific data from the Bureau of Economic Analysis, we find that firms with high tax-induced foreign cash have approximately 3 ….3 percent higher domestic liabilities relative to other multinationals, equivalent to $152.2 million more domestic debt per firm …

investments (financing asset sales) across the business cycle. Equity financed investment transfers wealth from equity to debt …, hence, transfer wealth back from debt to equity. Exploring the dynamics of the heretofore overlooked “asset sale versus …

leverage during the business cycle. Using a sample of monthly bank balance sheets for the period 1994-2012, we find not only … ratios to higher ones during the upward phase of the leverage cycle could play the role of an early warning indicator of … financial vulnerability. In addition, we find that bank heterogeneity matters and thus, an aggregate measure of bank leverage …

establishment-level data, we show that firms that tightened their debt capacity in the run-up (“high-leverage firms”) exhibit a … significantly larger decline in employment in response to household demand shocks than firms that freed up debt capacity (“low-leverage … among establishments of high-leverage firms. At the county level, we find that counties with a larger fraction of …

An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism …

leverage over the business cycle. Using a sample of monthly bank balance sheets for the period 1994–2011, we find not only that … leverage is predominantly pro-cyclical in the Colombian banking sector, but also that heterogeneity matters, and thus, an … aggregate measure of bank leverage can mask a fragile financial sector. In addition, although some banks display great dynamics …

, consumer sentiment and real interest rates) and financial sector leverage in major European countries. We base our analysis on … September 2008 to June 2011. We find little evidence for a relationship between macroeconomic variables and leverage in the pre …-crisis period, with only real interest rates having a negative short-term impact on leverage growth. We find positive feedback loops …