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The Resource How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns

How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns

Label
How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns
Title
How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns
Creator
Subject
Language
eng
Summary
The Allowance for Corporate Equity (ACE) introduced in Italy in 2011 has decreased the fiscal distortion between the costs of equity and debt by introducing the deductibility from taxable income of a notional return on capital increases. This paper estimates the impact of the ACE on the leverage ratio of Italian manufacturing firms. Using a novel instrumental variable approach to identify the causal effect, the authors find that the introduction of the incremental ACE has substantially reduced the leverage ratio of its beneficiaries. The effect of the reform increases with age and decreases with the size of the enterprise. These results suggest that an incremental ACE may be an effective policy tool to reduce the leverage ratio of European firms
http://library.link/vocab/creatorName
  • Branzoli, N
  • Caiumi, A
Geographic coverage
  • European Union
  • Europe
Index
no index present
Language note
English
Literary form
non fiction
Series statement
Taxation papers : working paper
Series volume
72-2018
http://library.link/vocab/subjectName
  • allowance for corporate equity
  • debt
  • equity capital
Label
How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns
Instantiates
Publication
Extent
181 p.
Isbn
9789279753565
Isbn Type
(pdf)
Label
How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns
Publication
Extent
181 p.
Isbn
9789279753565
Isbn Type
(pdf)

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
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