Search Results
Journal Article
Is leverage a tax dodge--or not?
In passing the Tax Reform Act of 1986, policymakers wanted to ensure that corporations would pay their fair share of tax. Congress broadened the corporate tax base, rescinded the investment tax credit, and instituted a new minimum tax. The issue of adequate tax payments has not gone away, however, because corporations have been taking larger interest deductions as a result of having substituted debt for equity on their balance sheets. ; This study begins by measuring the aggregate tax consequences of corporate leverage decisions. It also examines the tax implications of recent transactions in ...
Journal Article
Effects of leverage on corporate investment and hiring decisions
Speech
Asset bubbles and the implications for central bank policy
Remarks at The Economic Club of New York, New York City.
Journal Article
Bank exposure to highly leveraged transactions
An assessment of banks' changing involvement in highly leveraged transactions through the use of regulatory data collected in 1991 and 1992, which reveal that overall bank exposure to highly leveraged activities currently poses little threat to bank capital or to the bank insurance fund.
Speech
Still more lessons from the crisis
Remarks at the Foreign Policy Association Corporate Dinner, New York City
Working Paper
A no-arbitrage analysis of economic determinants of the credit spread term structure
This paper presents an internally consistent analysis of the economic determinants of the term structure of credit spreads across different credit rating classes and industry sectors. Our analysis proceeds in two steps. First, we extract three economic factors from 13 time series that capture three major dimensions of the economy: inflation pressure, real output growth, and financial market volatility. In the second step, we build a no-arbitrage model that links the dynamics and market prices of these fundamental sources of economic risks to the term structure of Treasury yields and corporate ...
Monograph
Leverage and cyclicality
Working Paper
The cost of capital in Japan: a survey