Cooper and Nyborg (2008) derive a tax-adjusted discount rate formula under a constant proportion leverage policy, investor taxes and risky debt. However, their analysis assumes zero recovery in default. We extend their framework to allow for positive recovery rates. We also allow for differences...

This study examined the moderating effect of tax incentives on the relationship between effective tax rates and cash holdings of Brazilian non-financial institutions listed on the B3 stock exchange from 2017 to 2021. Using a panel linear regression model with a fixed effect and a statistical...