Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26374
Authors: 
Panteghini, Paolo M.
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2329
Abstract: 
In this article we use contingent-claim analysis to calculate the effective tax rate (ETR) under corporate debt finance. In particular, we deal with both pure debt and two of the most well-known hybrid securities, i.e., convertible, and reverse convertible bonds. We show that: 1) effective taxation crucially depends on the characteristics of debt, and 2) existing measures of ETR can be dramatically biased, since they do not account for debt maturity, default risk or the ability to convert debt into equity.
Subjects: 
Capital structure
contingent claims
corporate taxation
hybrid securities
JEL: 
H2
Document Type: 
Working Paper

Files in This Item:
File
Size
390.54 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.