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The Theory and Practice of Corporate Finance: Evidence from the Field
We survey 392 CFOs about the cost of capital, capital budgeting, and capital structure. Large firms rely heavily on net present value techniques and the capital asset pricing model, while small firmsExpand
Payout Policy in the 21st Century
We survey 384 CFOs and Treasurers, and conduct in-depth interviews with an additional two dozen, to determine the key factors that drive dividend and share repurchase policies. We find that managersExpand
How Big are the Tax Benefits of Debt
I integrate under firm-specific benefit functions to estimate that the capitalized tax benefit of debt equals 9.7 percent of firm value (or as low as 4.3 percent, net of personal taxes). The typicalExpand
Corporate Misreporting and Bank Loan Contracting
This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans initiated before restatement, loans initiated after restatement have significantlyExpand
Debt and the Marginal Tax Rate
Do taxes affect corporate debt policy? This paper answers this question by testing whether the incremental use of debt is positively related to firm-specific, tax-code-consistent marginal tax rates.Expand
Do Firms Hedge in Response to Tax Incentives
There are two tax incentives for corporations to hedge: to increase debt capacity and interest tax deductions, and to reduce expected tax liability if the tax function is convex. We test whetherExpand
The Real Effects of Financial Constraints: Evidence from a Financial Crisis
We survey 1,050 CFOs in the U.S., Europe, and Asia to assess whether their firms are credit constrained during the global credit crisis of 2008. We study whether corporate spending plans differExpand
Proxies for the corporate marginal tax rate
This paper focuses on how best to measure the corporate marginal tax rate, which is an important input into financial analysis of the cost of capital, financing policy, corporate hedging, andExpand
The Economic Implications of Corporate Financial Reporting
We survey 401 financial executives, and conduct in-depth interviews with an additional 20, to determine the key factors that drive decisions related to reported earnings and voluntary disclosure. TheExpand
Taxes and Corporate Finance: A Review
This article reviews tax research related to domestic and multinational capital structure, payout policy, compensation policy, risk management, and organizational form. For each topic, theExpand