The real effects of bank taxation: Evidence for corporate financing and investment

Corporate Taxation and Investment Evidence from the Belgian ACE Reform

Corporate Investment and Financing Dynamics∗

This paper studies the behavior of leverage ratios in a dynamic trade-off model with real frictions. Firms underutilize debt when financing investment to retain financial flexibility. Underutilization of debt persists even when firms exercise their last investment options, and it is more (less) severe for more back-loaded (front-loaded) investment opportunities. Thus, leverage dynamics cruciall...

Corporate financing decisions, managerial market timing, and real investment

Both market timing and investment-based theories of corporate financing predict underperformance after firms raise capital, but only market timing predicts that the composition of financing (equity compared to debt) should also forecast returns. In cross-sectional tests, we find that the amount of net financing is more important than its composition in explaining future stock returns. In the ti...

Real Estate Risk, Corporate Investment and Financing Choice

This paper examines how asset risk impacts corporate investment and financing decisions. We derive a general model that incorporates risk, adjustment cost, and depreciation features of assets-in-place into investment decisions. The model suggests that the risk and adjustment cost of assets-in-place reduce both corporate investment and financing. We empirically test the model in a panel of US fi...

Bank Financing and Corporate Governance: Empirical Evidence from Vietnam

JEL Classification G32, G34, G39. This paper examines the role of debt resulting from bank financing for corporate governance towards the activities of withdrawing cash and assets to controlling shareholders’ account to benefit their rights by capturing secondary data for 250 nonfinancial firms listed in the Vietnam Index, considered as one of the emerging stock markets, during the period from ...