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Author: Andrew Lyon
Publisher:
Published: 1992
Total Pages: 56
ISBN-13:
DOWNLOAD EBOOKHow the effects of taxation and information asymmetries influence the firm's financial decisions, and how public policy may affect all three.
Author: R. Glenn Hubbard
Publisher: University of Chicago Press
Published: 2009-05-15
Total Pages: 354
ISBN-13: 0226355942
DOWNLOAD EBOOKIn this volume, specialists from traditionally separate areas in economics and finance investigate issues at the conjunction of their fields. They argue that financial decisions of the firm can affect real economic activity—and this is true for enough firms and consumers to have significant aggregate economic effects. They demonstrate that important differences—asymmetries—in access to information between "borrowers" and "lenders" ("insiders" and "outsiders") in financial transactions affect investment decisions of firms and the organization of financial markets. The original research emphasizes the role of information problems in explaining empirically important links between internal finance and investment, as well as their role in accounting for observed variations in mechanisms for corporate control.
Author: International Monetary Fund. Fiscal Affairs Dept.
Publisher: International Monetary Fund
Published: 2009-12-06
Total Pages: 41
ISBN-13: 1498335926
DOWNLOAD EBOOKTax distortions are likely to have encouraged excessive leveraging and other financial market problems evident in the crisis. These effects have been little explored, but are potentially macro-relevant. Taxation can result, for example, in a net subsidy to borrowing of hundreds of basis points, raising debt-equity ratios and vulnerabilities from capital inflows. This paper reviews key channels by which tax distortions can significantly affect financial markets, drawing implications for tax design once the crisis has passed.
Author: John R. Graham
Publisher: Now Publishers Inc
Published: 2006
Total Pages: 136
ISBN-13: 1933019417
DOWNLOAD EBOOKA Review of Taxes and Corporate Finance investigates the consequences of taxation on corporate finance focusing on how taxes affect corporate policies and firm value. A common theme is that tax rules affect corporate incentives and decisions. A second emphasis is on research that describes how taxes affect costs and benefits. A Review of Taxes and Corporate Finance explores the multiple avenues for taxes to affect corporate decisions including capital structure decisions, organizational form and restructurings, payout policy, compensation policy, risk management, and the use of tax shelters. The author provides a theoretical framework, empirical predictions, and empirical evidence for each of these areas. Each section concludes with a discussion of unanswered questions and possible avenues for future research. A Review of Taxes and Corporate Finance is valuable reading for researchers and professionals in corporate finance, corporate governance, public finance and tax policy.
Author: International Monetary Fund. Fiscal Affairs Dept.
Publisher: International Monetary Fund
Published: 2016-12-10
Total Pages: 78
ISBN-13: 1498345204
DOWNLOAD EBOOKRisks to macroeconomic stability posed by excessive private leverage are significantly amplified by tax distortions. ‘Debt bias’ (tax provisions favoring finance by debt rather than equity) has increased leverage in both the household and corporate sectors, and is now widely recognized as a significant macroeconomic concern. This paper presents new evidence of the extent of debt bias, including estimates for banks and non-bank financial institutions both before and after the global financial crisis. It presents policy options to alleviate debt bias, and assesses their effectiveness. The paper finds that thin capitalization rules restricting interest deductibility have only partially been able to address debt bias, but that an allowance for corporate equity has generally proved effective. The paper concludes that debt bias should feature prominently in countries’ tax reform plans in the coming years.
Author: Robert S. Pindyck
Publisher: World Bank Publications
Published: 1989
Total Pages: 58
ISBN-13:
DOWNLOAD EBOOKIrreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.
Author: Martin Feldstein
Publisher: Chicago : University of Chicago Press
Published: 1987
Total Pages: 512
ISBN-13:
DOWNLOAD EBOOKResearch on capital formation has long been a major focus of studies sponsored by the National Bureau of Economic Research because of the crucial role of capital accumulation in the process of economic growth. The papers in this volume examine the influence of taxes on capital formation, with specific focus on the determinants of saving and the process of investment in plant and equipment.
Author: Cherian Samuel
Publisher: World Bank Publications
Published: 1999
Total Pages: 52
ISBN-13:
DOWNLOAD EBOOKApril 1996 Internal finance is less important for Indian firms than U.S. firms, and external debt more -- but for neither is the stockmarket an important source. In seeking funding, a firm's main choice is between external and internal financing. And, says Samuel, the evidence suggests that the stock market plays only a limited role providing finance for both U.S. and Indian firms. Samuel finds that internal finance plays less of a role for Indian firms than for U.S. firms -- and external debt a bigger role. This is consistent with theoretical predictions, given that information and agency problems are less severe for Indian firms than for U.S. firms. (India's financial system is predominantly bank-oriented, more like German and Japanese financial systems than like American and British systems.) Samuel's estimate of the role of the stock market as a source of finance is lower than other estimates, partly because of methodological approach: He studied sources and uses of funds, rather than the financing of net asset growth and capital expenditures. To the extent that these findings for India are generalizable to other developing countries -- analysis was restricted to the stock market's role in providing finance -- Samuel concludes that the development of stock markets is unlikely to spur corporate growth in developing countries. (Why, then, he wonders, do firm managers worry so much about share prices?) And there's a caveat: Foreign investors have played only a limited role in the slow-paced privatization of India's state-owned enterprises -- although in recent years, despite delayed reform of the securities market, foreign institutional investors have begun to invest more. In emerging markets in Eastern Europe and Latin America, foreign investors have played a much more active role in privatization, chiefly by investing in those stock markets. This paper is a product of the Operations Policy Group, Operations Policy Department. The author may be contacted at [email protected].
Author: H. Kent Baker
Publisher: John Wiley & Sons
Published: 2011-03-31
Total Pages: 504
ISBN-13: 1118022947
DOWNLOAD EBOOKA comprehensive guide to making better capital structure and corporate financing decisions in today's dynamic business environment Given the dramatic changes that have recently occurred in the economy, the topic of capital structure and corporate financing decisions is critically important. The fact is that firms need to constantly revisit their portfolio of debt, equity, and hybrid securities to finance assets, operations, and future growth. Capital Structure and Corporate Financing Decisions provides an in-depth examination of critical capital structure topics, including discussions of basic capital structure components, key theories and practices, and practical application in an increasingly complex corporate world. Throughout, the book emphasizes how a sound capital structure simultaneously minimizes the firm's cost of capital and maximizes the value to shareholders. Offers a strategic focus that allows you to understand how financing decisions relates to a firm's overall corporate policy Consists of contributed chapters from both academics and experienced professionals, offering a variety of perspectives and a rich interplay of ideas Contains information from survey research describing actual financial practices of firms This valuable resource takes a practical approach to capital structure by discussing why various theories make sense and how firms use them to solve problems and create wealth. In the wake of the recent financial crisis, the insights found here are essential to excelling in today's volatile business environment.
Author: Paul Butzen
Publisher: Edward Elgar Publishing
Published: 2003-01-01
Total Pages: 354
ISBN-13: 9781781956335
DOWNLOAD EBOOKThis book provides coherent theoretical and empirical analysis of firms’ investment and financing decisions. It assesses the role of uncertainty, financial imperfections, corporate governance and taxation. Evidence is obtained using several unique and high quality microeconomic data-sets, which explore features seldom addressed.
