...) and a variable component (a tax rate) and investigate how each type of tax expense affects the cost of equity capital. Unlike other fixed costs, the fixed tax component may be negative (a tax benefit). A lower fixed tax component always reduces cost of capital. The effect of a lower tax rate depends on the sign...

..., The University of Texas at Austin, McCombs School of Business, Austin, TX, USA. Editor's note: Accepted by Linda K. Krull. 27 11 2019 21 01 2022 25 01 2022 2023 tax avoidance cost of capital debt and equity financing Existing studies find that tax avoidance affects...

... wisdom, warmth, and true friendship are profoundly missed by each of us. Editor's note: Accepted by Kenneth J. Klassen. July 2015 September 2016 2017 taxable income cost of capital performance variability, firm risk In this study we examine whether estimated...

... and suggestions. September 2011 April 2013 2013 investment cost of capital institutional ownership shareholder taxes Despite a reduction in their cost of capital and, thus, an incentive to increase capital investment, many firms increased their dividend payout in response...