The Experts below are selected from a list of 3162 Experts worldwide ranked by ideXlab platform
John R Graham - One of the best experts on this subject based on the ideXlab platform.
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tax shelters and corporate Debt Policy
Journal of Financial Economics, 2006Co-Authors: John R Graham, Alan L TuckerAbstract:We use a novel sample of 44 tax shelter cases involving public corporations to investigate which types of firms shelter, the magnitude of the tax shelters they use, and whether participating in a shelter affects corporate Debt Policy. The propensity to shelter increases with firm size, profitability, R&D expenditures, foreign operations, and the market to book ratio. The average deduction produced by the shelters in our sample is very large, equaling approximately nine percent of asset value. This is about three times as large as interest deductions for comparable firms. Our results suggest that corporations substitute away from Debt when using tax shelters. Seven years before they engage in sheltering activity, shelter firms have mean Debt ratios of about 25 percent, roughly equivalent to matched firm Debt ratios. By the year of the sheltering activity, shelter firm Debt ratios have fallen to approximately 18 percent while matched firm Debt ratios have not fallen. These results help explain why some firms appear to be under-levered when tax-sheltering activity is ignored, and also why corporate tax payments have fallen so precipitously in recent years.
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employee stock options corporate taxes and Debt Policy
Journal of Finance, 2004Co-Authors: John R Graham, Mark H Lang, Douglas A ShackelfordAbstract:We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, including the effect of options reduces the estimated median marginal tax rate from 31% to 5%. For S&P firms, in contrast, option deductions do not affect marginal tax rates to a large degree. Our evidence suggests that option deductions are important nonDebt tax shields and that option deductions substitute for interest deductions in corporate capital structure decisions, explaining in part why some firms use so little Debt. THIS PAPER EXPLORES the corporate tax implications of compensating employees with nonqualified stock options. Corporations deduct the difference between current market and strike prices when an employee exercises a nonqualified stock option. For option-intensive companies with rising stock prices, this deduction can be very large. We focus on the effects of options on the year 2000 marginal tax rates (MTRs) for Nasdaq 100 and S&P 100 firms and the implications for Debt Policy. 1 Understanding the tax implications of options is increasingly important because the proportion of compensation paid in stock options has soared in recent years. A perspective on the magnitude of options compensation and its increase over time can be gained from papers like the one by Desai (2002), who reports that in 2000 the top five officers of the 150 largest U.S. firms received options with grant values exceeding $16 billion, which he estimates is a tenfold increase over the decade. He estimates that proceeds from option exercises averaged 29% of operating cash flows in 2000, up from 10% in 1996. In addition,
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employee stock options corporate taxes and Debt Policy
National Bureau of Economic Research, 2002Co-Authors: John R Graham, Mark H Lang, Douglas A ShackelfordAbstract:We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, the median marginal tax rate is 31 percent when option deductions are ignored but falls to 5 percent when one accounts for the deductions. For S&P firms, however, option deductions do not affect marginal tax rates to a large degree. In the spirit of DeAngelo and Masulis (1980), option deductions are important nonDebt tax shields that can affect corporate policies. We find evidence consistent with option deductions substituting for interest deductions in corporate capital structure decisions. This evidence explains in part why some firms appear to be underlevered.
Douglas A Shackelford - One of the best experts on this subject based on the ideXlab platform.
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employee stock options corporate taxes and Debt Policy
Journal of Finance, 2004Co-Authors: John R Graham, Mark H Lang, Douglas A ShackelfordAbstract:We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, including the effect of options reduces the estimated median marginal tax rate from 31% to 5%. For S&P firms, in contrast, option deductions do not affect marginal tax rates to a large degree. Our evidence suggests that option deductions are important nonDebt tax shields and that option deductions substitute for interest deductions in corporate capital structure decisions, explaining in part why some firms use so little Debt. THIS PAPER EXPLORES the corporate tax implications of compensating employees with nonqualified stock options. Corporations deduct the difference between current market and strike prices when an employee exercises a nonqualified stock option. For option-intensive companies with rising stock prices, this deduction can be very large. We focus on the effects of options on the year 2000 marginal tax rates (MTRs) for Nasdaq 100 and S&P 100 firms and the implications for Debt Policy. 1 Understanding the tax implications of options is increasingly important because the proportion of compensation paid in stock options has soared in recent years. A perspective on the magnitude of options compensation and its increase over time can be gained from papers like the one by Desai (2002), who reports that in 2000 the top five officers of the 150 largest U.S. firms received options with grant values exceeding $16 billion, which he estimates is a tenfold increase over the decade. He estimates that proceeds from option exercises averaged 29% of operating cash flows in 2000, up from 10% in 1996. In addition,
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employee stock options corporate taxes and Debt Policy
National Bureau of Economic Research, 2002Co-Authors: John R Graham, Mark H Lang, Douglas A ShackelfordAbstract:We find that employee stock option deductions lead to large aggregate tax savings for Nasdaq 100 and S&P 100 firms and also affect corporate marginal tax rates. For Nasdaq firms, the median marginal tax rate is 31 percent when option deductions are ignored but falls to 5 percent when one accounts for the deductions. For S&P firms, however, option deductions do not affect marginal tax rates to a large degree. In the spirit of DeAngelo and Masulis (1980), option deductions are important nonDebt tax shields that can affect corporate policies. We find evidence consistent with option deductions substituting for interest deductions in corporate capital structure decisions. This evidence explains in part why some firms appear to be underlevered.
Mohamed Gulamhussen - One of the best experts on this subject based on the ideXlab platform.
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corporate Debt Policy of small firms an empirical re examination
Journal of Small Business and Enterprise Development, 2003Co-Authors: Jose Esperanca, Ana Paula Matias Gama, Mohamed GulamhussenAbstract:The capital structure decision can be considered a difficult problem for academics as well as for managers. Corporate Debt Policy has been studied in the context of both large and small firms in developed countries, but comparatively less developed countries have received much less attention in the literature. This is particularly true in the case of medium income economies with an above average weight of financial intermediaries. This paper tests the factors affecting the capital structure decision of small firms in one such country. The pooled time series cross‐section regression estimates for 995 firms and four years, suggests variables such as taxes, bankruptcy costs, size, collateral, age and growth opportunities affect the capital structure decisions of small firms. These findings have significant implications, both at the firm level and for the support of policies that redefine the financial infrastructure that may foster the emergence of local entrepreneurs in these economies.
Andrea Sironi - One of the best experts on this subject based on the ideXlab platform.
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an analysis of european banks snd issues and its implications for the design of a mandatory subordinated Debt Policy
Journal of Financial Services Research, 2001Co-Authors: Andrea SironiAbstract:During the last twenty years an increasing number of proposals to improve bank market discipline through the introduction of a mandatory subordinated Debt Policy (MSDP) have been presented and critically discussed by academic economists and bank regulators. While theoretical issues are key in this debate, a proper understanding of the market for banks' subordinated notes and debentures (SND) and the main features of securities is also considered relevant for the potential introduction, design and goals setting of such a Policy. This paper builds on information concerning issuers, investors, markets, pricing and the technical features of securities to critically discuss these aspects. Data on over 1800 European banks SND issues completed during the 1988–2000:Q1 period together with information on primary and secondary market functioning are presented.
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an analysis of european banks snd issues and its implications for the design of a mandatory subordinated Debt Policy
Social Science Research Network, 2000Co-Authors: Andrea SironiAbstract:During the last twenty years an increasing number of proposals to improve bank market discipline through the introduction of a mandatory subordinated Debt Policy have been drafted and critically discussed by academic economists and bank regulators. While theoretical issues are key in this debate, a proper understanding of the market of banks' subordinated notes and debentures (SND) and of the securities main features is also considered as relevant for the potential introduction, design, and goals setting of such a Policy. This paper builds on information concerning issuers, investors, markets, and securities technical features to critically discuss these aspects. Data on over 1,800 European banks' SND issues completed during the 1988-2000 period together with information on primary and secondary market functioning is presented.
Jose Esperanca - One of the best experts on this subject based on the ideXlab platform.
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corporate Debt Policy of small firms an empirical re examination
Journal of Small Business and Enterprise Development, 2003Co-Authors: Jose Esperanca, Ana Paula Matias Gama, Mohamed GulamhussenAbstract:The capital structure decision can be considered a difficult problem for academics as well as for managers. Corporate Debt Policy has been studied in the context of both large and small firms in developed countries, but comparatively less developed countries have received much less attention in the literature. This is particularly true in the case of medium income economies with an above average weight of financial intermediaries. This paper tests the factors affecting the capital structure decision of small firms in one such country. The pooled time series cross‐section regression estimates for 995 firms and four years, suggests variables such as taxes, bankruptcy costs, size, collateral, age and growth opportunities affect the capital structure decisions of small firms. These findings have significant implications, both at the firm level and for the support of policies that redefine the financial infrastructure that may foster the emergence of local entrepreneurs in these economies.
