doi:10.2139/ssrn.2016561We demonstrate that firms' investment and job creation are influenced by shareholder taxes on capital gains and dividend. More importantly, the relation betweenDai, ZhonglanYing, YueZhang, Harold H.Social Science Electronic Publishing...
In this case, the tax-subsidy program induces the levered firm to defer, not hasten, its investment. Finally, we show that the levered firm is made worse off with than without the program because of the presence of agency and bankruptcy costs. 展开 ...
This paper assesses the effects of capital gains taxes on investment by exploiting a unique institutional setting in Korea, where the capital gains tax rates vary by firm size. I use a difference-in-differences design that compares the outcomes of firms whose tax rates were reduced, due to an...
intheshortrunbut,afterfulladjustment,thehighercapitallevelreducesthemarginalrevenueproductofcapitalenoughtooffsetthedividendtaxreduction,leavingequitypricesthesame.Underthe“new”view,themarginalsourceoffinanceisretainedearningsandthedividendtaxcutiscapitalizedintothesharepriceofthefirmbuthasnoinvestmenteffect.Understanding...
Taxes, Corporate Financial Policy and Investment Decisions in Australia †utility theorynonseparable preferencesnonadditive utilitydisappointmentregretpreferences for informationThis paper presents a formal model of an optimizing firm to examine incentives provided by Australia's full imputation scheme in ...
We quantify the relative importance of contracting frictions and taxes in shaping firms' capital structures. We estimate a dynamic contracting model based on limited entrepreneurial commitment. In the model a firm seeks debt financing from an intermediary and is subject to taxation. Because the firm ...
the government has designed and implemented since 1995 a national program of water conservation. Significant positive incentives have been decided to encourage farmers to adopt new irrigation techniques offered by this program. It is clear that despite the importance of subsidies for investment in water...
a firm will also invest in current assets. As the firm changes its investment in current assets, its current liabilities will usually change as well. To determine the change in net working capital, the easiest approach is just to take the difference between the beginning and ending net working...
No relation between contributions and tax rate is consistent with profit maximization, whereas either a positive or negative relation is consistent with investment in contributions beyond the profit-maximizing level. The empirical analysis is based on firm-specific longitudinal data on contributions and ...
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