Commodity price volatility increased during 2006 to 2011 first with the commodity bull cycle of 2006 to 2008 and then with the credit freeze crisis and Great Recession. This letter uses both high- and low-frequency data over 1990 to 2011 to examine the link between economic fundamentals and...

We investigate the effect of taxes on the utilization of inside debt (loans from owners) and outside debt (loans from non-owners) across small businesses organized as taxable corporations and flow-through entities (Subchapter S corporations and part-nerships). We find that the tax incentives to...

Examines the relation between tax carryovers for acquired corporations and their excess stock returns at the time of announcement of a pending acquisition. Uses a matched pair design and limits the sample to taxable acquisitions which may qualify for a step up in tax basis.

Asserts that the income tax encourages the use of debt because of the deductibility of interest expense. Examines this conjecture by analyzing the interest incurred by a large sample if small, closely held corporations. Estimates regression of the level of interest on proxies for expected future...

We exploit cross-temporal differences in capital gains tax rates to test whether shareholder-level capital gains taxes are associated with higher acquisition premiums for taxable acquisitions. We model acquisition premiums as a function of proxies for the capital gains taxes of target...