Tax
Working Paper
Shareholder Illiquidity and Firm Behavior: Financial and Real Effects of the Personal Wealth Tax in Private Firms
We examine how negative liquidity shocks to households propagate to firms. We show that higher taxes on the home of private firms’ controlling shareholders are associated with higher dividend and salary payments from firms to shareholders and...Read more
Putting Technology to Good Use for Society: the Role of Corporate, Competition and Tax Law
Innovation and its main output, technology, are changing the way we work, socialise, vote, and live. New technologies have improved our lives and made firms more productive, overall raising living standards across the world. Thanks to progress in...Read more
Dividends and Taxes: The Moderating Role of Agency Conflicts
We find that potential conflicts between majority and minority shareholders strongly influence how dividends respond to taxes. When the controlling shareholder has a smaller stake, the incentives to extract private benefits are stronger – a...Read more
Corporate Inversions: Going Beyond Tax Incentives
We study tax and non-tax incentives for corporate inversions in a hand-collected dataset of 691 inversions out of 11 home countries into 45 host destinations over the 1996-2013 period. Even though lower tax rates generally attract inversions,...Read more
Why Are Corporate Payouts So High in the 2000s?
The annual inflation-adjusted amount paid out through dividends and repurchases by public industrial firms is three times larger from 2000 to 2018 than from 1971 to 1999. We find that 38% of the increase in aggregate annual payouts is explained...Read more
Containing Systemic Risk by Taxing Banks Properly
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
Taxes, Ownership and Capital Structure
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
Taxes, Earnings Payout, and Payout Channel Choice
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
Transparency, Tax Pressure and Access to Finance
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
