Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates and thin capitalization rules that limit the tax-deductibility of internal debt flows. In a symmetric t...

Much has been learned about calculation, commodification and marketization from the social studies of markets and finance. But what of capitalization? What is distinctive about this mode of valuation and the reality it impels? What does it mean to live under the ‘asset condition’? In Capitalization: A Cultural Guide, Fabian Muniesa and his colleagues at the Centre de Sociologie de l’Innovation ...

Although social mood can motivate herding towards new industries, the extent to which regulators cater may affect that herding. We explore this issue in context of nascent cannabis industry by examining among stocks listed US and Canada, where regulatory treatment varies its congruence with prevailing on cannabis’ legalization. Canadian-listed entail strong across all market states sectors, alo...

∝ 〈n|A〉2α with 1/2 ≥ α ≥ 1 when a parameter A (usually the system size) is varied. A can be the strength of the node, the capitalization of the firm or the area of the habitat. On the other hand, quantities often obey gap scaling meaning that their density function depends on, say, the system size A as P (n|A) = nF (n/A). This note describes that these two notions cannot coexist except when α =...

One key function of the Hong Kong Monetary Authority (HKMA) is to promote the stability and integrity of the financial system in Hong Kong. There are about 200 authorized institutions (AIs) in Hong Kong, many of which are deposit taking banks. The total assets of AIs as of June 2010 are about HKD 11 trillion, 6 times as large as the latest annual GDP of Hong Kong and about 60% of the total mark...

This paper compares the informativeness of discretionary research and development (R&D) capitalization under IAS 38 with non-discretionary “as-if” R&D capitalization. While prior consistently demonstrated capital market benefits capitalization, evidence for reported are less favorable due to earnings management concerns. Because studies based on adjusted data assuming resulting numbers free fro...

This paper describes an experimental study for discovering underlying laws of market capitalization using BS (Balance Sheet) items. For this purpose, we apply law discovery methods based on neural networks: RF5 (Rule Finder) discovers a single numeric law from data containing only numeric values, RF6 discovers a set of nominally conditioned polynomials from data containing both nominal and nume...