In academic literature, it is usual to analyze the variability of effective tax rates, because some authors try to justify the reasons for the existence of differences between these taxes and statutory ones. However, this kind of research has never been done for the Portuguese case. The...

Using staggered corporate income tax changes across U.S. states, we show that taxes have a first-order effect on capital structure. Firms increase leverage by around 40 basis points for every percentage-point tax increase. Consistent with dynamic tradeoff theory, the effect is asymmetric:...