In a cross-border takeover, the tax base associated with future capital gains is transferred from target shareholders to acquirer shareholders. Cross-country differences in capital gains tax rates enable us to estimate the discount in the takeover price on account of future capital gains. The estimation suggests that a one percentage point increase in the capital gains tax rate reduces the valu...

the aim of this empirical study is to explore the trade-off model and pecking order model of capital structure. the investigation is performed using panel data procedures for a sample of 76 firms listed in tehran stock exchange during 2007-2010.the study employs ols regression model in examining the capital structure of firms in iran. the study employs variables reflecting differing theoretical...

Theory tells us that output, the capital stock and the user cost of capital are cointegrated. From the capital accumulation identity, it also follows that the capital stock and investment have a long-run proportional relationship. This has been used to justify the estimation of investment equations embodying a long-run relation between investment and output, rather than between the capital stoc...

This article examines how the pension insurance provided by the PBGC and the tax treatment of pension plans affect the cost of labor and capital. Two important aspects of the insurance program are (1) the premium schedule and (2) an employer's liability for unfunded pension benefits (the deductible). These two aspects interact to increase the cost of capital relative to labor, especially for fi...

Using US firms with over $5b market cap, this paper tests the impact of levered beta on firm’s value and optimal capital structure. synthetic rating method in a recursive model, shows current weighted average cost sensitivities as risk measured by changes. The that change due to alternative leverage levels or other factors will alter insignificantly has no structure those firms’ extra-strong bo...

The cost of public investment is not the value of public capital. Unlike with private investors, there is no plausible behavioral model in which every dollar that the public sector spends as “investment” creates capital in an economic sense. While this simple analytic point is obvious, it has so far been uniformly ignored in the empirical literature on economic growth which uses, at best, cumul...

This study adopts the human capital perspective as a theoretical lens to understand the factors that influence organizational intention to adopt open source software (OSS). We posit that availability of internal human capital and accessibility to external human capital significantly affect an organization’s intention to adopt OSS either directly or indirectly through switching cost. We analyze ...

The literature relates human capital costs to firm leverage (Berk, Stanton, and Zechner (2010) and Chemmanur, Cheng, and Zhang (2013)) and mergers and acquisitions (Lee, Mauer, and Xu (2017)). In this paper, we study the relation between a firm’s human capital costs and investment policy. We first present a simple theoretical setting to illustrate the positive effects of risky investment on ave...

BANK OF AMERICA JOURNAL OF APPLIED CORPORATE FINANCE apital markets have become increasingly global over the last 20 years. While providing world investors with opportunities to diversify beyond their home markets, the progressive integration of international financial markets is also bringing about a significant reduction in the cost of capital of public corporations around the world. And a lo...