Taxation and Corporate Pension Policy

Taxation and Corporate Financial Policy

This paper reviews the theory and evidence regarding the impact of taxation on corporate financial policy. Starting from a basic characterization of the classical corporate income tax and its effects, the analysis focuses on three areas of research: equity policy, debt-equity decisions, and choices regarding ownership structure and organizational form. The discussion stresses the distinction be...

Appendix for “ Managerial risk - taking incentives and corporate pension policy ”

Taxation and Corporate Use of Debt: Implications for Tax Policy

There is growing empirical evidence showing that taxes encourage use of debt in large profi table fi rms and discourage it in less profi table fi rms. There has been debate, though, on the source of any non-tax costs from debt fi nance offsetting the tax advantages of debt. This paper lays out competing hypotheses, notes that the existing empirical evidence is more supportive of a “lemons” mode...

Fair-value Pension Accounting, Corporate Risk Management and Pension Investment Policy

This paper investigates whether employer sponsors manage their pension risk exposure as an integral part of firm risk, or manage these two risk exposures separately over an extended period (2003-2010) in the UK, when transition from a disclosure to a recognition pension accounting regime has taken place. We test three competing explanations of corporate pension investment policy: coordinated ri...

Corporate Governance and Taxation

This paper analyzes the interaction between corporate taxes and corporate governance. We show that the characteristics of a taxation system impact the size of private benefits managers are able to extract. A higher tax rate increases the amount of income a manager would divert, while stronger tax enforcement reduces it and, in so doing, can raise the stock market value of a company in spite of ...