We find that potential conflicts between majority and minority shareholders strongly influence how dividends respond to taxes. Examining the population of firms with proprietary microdata on all family relationships and a million individual tax...Read more
We identify new stylized facts about corporate inversions. Our analysis is based on a handcollected dataset of 691 inversions out of 11 home countries into 45 host destinations over the 1996-2013 period. First, the majority of these inver- sions...Read more
At the root of recurring bank crises are deeply-implanted incentives for banks and their executives to take systemically excessive risk. Since the 2008–2009 financial crisis, regulators have sought to strengthen the financial system by requiring...Read more
This paper studies the ownership connection between two units that share a common controlling entity. Our results generate diverse organizations, including the horizontal groups of US family firms and the hierarchical ownership of both...Read more
We study the tax regulations in relation to dividends and capital gains over the last two decades for the UK in order to determine whether changes in tax regimes affect corporate payout policy (dividends, share repurchases, or a combination)....Read more
In choosing transparency, firms must trade off the benefits from better access to finance against the cost of a greater tax burden. We study this trade-off in a model with distortionary taxes and endogenous rationing of external finance. The...Read more
Influential contributors to debates concerning corporate governance assert that it is impossible to understand key trends without taking politics into account. This proposition has, however, remained largely untested. This paper therefore offers...Read more
The relationship between dividends and taxes continues to be an open empirical question. While some researchers find that taxes have a first-order...Read more
Using hand-collected data on 691 corporate inversions from 11 home countries into 45 host destinations in 1996-2013, we document that corporations invert to destinations with lower tax rates and similar governance standards. Indeed, passage of bilateral double taxation treaties (DTTs), which provide tax incentives for inversions, and bilateral tax information exchange agreements (TIEAs), which improve transparency of tax havens, leads to an increase in corporate inversions.
