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Interest Rates Fluctuations and the Advantage of Long‐Term Debt Financing: A Note on the Effect of the Tax‐Timing Option
15 references·0 citing·46 second hopsampled
Interest Rates Fluctuations and the Advantage of Long‐Term Debt Financing: A Note on the Effect of the Tax‐Timing Option (1992)Interest Rates Fluctuations and the Advan…The Pricing of Exchange Rate Risk in the Stock Market (1991)The Pricing of Exchange Rate …Interest Rate Uncertainty and the Optimal Debt Maturity Structure (1991)Interest Rate Uncertainty and…TAX‐TIMING OPTIONS, LEVERAGE, AND THE CHOICE OF CORPORATE FORM (1988)TAX‐TIMING OPTIONS, LEVERAGE,…Tax Options and Corporate Capital Structures (1988)Tax Options and Corporate Cap…Bankruptcy and Agency Costs: Their Significance to the Theory of Optimal Capital Structure (1988)Bankruptcy and Agency Costs: …On the Relevance of Debt Maturity Structure (1985)On the Relevance of Debt Matu…Optimal stock trading with personal taxes (1984)Optimal stock trading with pe…Optimal bond trading with personal taxes (1984)Optimal bond trading with per…Optimal Stock Trading with Personal Taxes: Implications for Prices and the Abnormal January Returns (1983)Optimal Stock Trading with Pe…Capital Market Equilibrium with Personal Tax (1983)Capital Market Equilibrium wi…A Re-Examination of Traditional Hypotheses about the Term Structure of Interest Rates (1981)A Re-Examination of Tradition…THE INSIGNIFICANCE OF BANKRUPTCY COSTS TO THE THEORY OF OPTIMAL CAPITAL STRUCTURE (1978)THE INSIGNIFICANCE OF BANKRUP…DEBT AND TAXES* (1977)DEBT AND TAXES*The Strong Case for the Generalized Logarithmic Utility Model as the Premier Model of Financial Markets (1976)The Strong Case for the Gener…THE STRONG CASE FOR THE GENERALIZED LOGARITHMIC UTILITY MODEL AS THE PREMIER MODEL OF FINANCIAL MARKETS (1976)THE STRONG CASE FOR THE GENER…An Intertemporal Capital Asset Pricing Model (1973)The Pricing of Options and Corporate Liabilities (1973)Theory of Rational Option Pricing (1973)The Market Reaction to Stock Splits (1987)The Courage of Misguided Convictions (1999)Optimization Methods in Finance (2006)Time Series Analysis: Forecasting and Control (1977)Time Series Analysis: Forecasting and Control (1977)Does Default Risk in Coupons Affect the Valuation of Corporate Bonds?: A Contingent Claims Model (1993)Valuation of the early-exercise price for options using simulations and nonparametric regression (1996)A Nonparametric Model of Term Structure Dynamics and the Market Price of Interest Rate Risk (1997)A Theory of the Term Structure of Interest Rates (1985)A nonlinear general equilibrium model of the term structure of interest rates (1989)Turn-of-Month Evaluations of Liquid Profits and Stock Returns: A Common Explanation for the Monthly and January Effects (1990)Tax-Motivated Trading by Individual Investors (2005)Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case (1969)Optimum consumption and portfolio rules in a continuous-time model (1971)Optimal Consumption and Investment with Capital Gains Taxes (2001)Prospect Theory and the Disposition Effect (2010)The arbitrage theory of capital asset pricing (1976)The Determinants of Firms' Hedging Policies (1985)Economic Forces and the Stock Market (1986)Profitability of Momentum Strategies in the International Equity Markets (2000)Are Financial Assets Priced Locally or Globally? (2002)Stock prices and exchange rate dynamics (2005)Determinants of corporate borrowing (1977)Optimal capital structure under corporate and personal taxation (1980)The Determinants of Contract Terms in Bank Revolving Credit Agreements (2000)The maturity of debt issues and predictable variation in bond returns (2003)Corporate social responsibility and the cost of corporate bonds (2015)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)The Administrative Costs of Corporate Bankruptcy: A Note (1982)CORPORATE CONTROL AND THE POLITICS OF FINANCE (1991)The cost of capital, corporation finance and the theory of investment (2008)Trade-Off and Pecking Order Theories of Debt**We thank Long Chen, Sudipto Dasgupta, Espen Eckbo, Chris Hennessy, Jay Ritter, Michael Roberts, Tan Wang, and Jaime Zender for comments and helpful discussions. Murray Frank thanks Piper Jaffray for financial support. Vidhan Goyal thanks the Research Grants Council of the Hong Kong Special Administrative Region for financial support (Project No. 6489/06H). The literature on capital structure is vast, containing hundreds of papers, and so we cannot hope to cover it all. Inevitably, we have left out a great deal, much of it very important. As such, we apologize in advance for our inevitable oversights. Even more than usual, it must be stressed that this survey reflects only our views. (2008)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)A Multivariate Model of Strategic Asset Allocation (2001)Consensus Consumer and Intertemporal Asset Pricing with Heterogeneous Beliefs (2007)Returns of claims on the upside and the viability of U-shaped pricing kernels☆ (2010)Asset pricing and the bid-ask spread (1986)Theory of Financial Decision Making. (1988)The Dynamic Effects of Personal and Corporate Income Tax Changes in the United States (2013)Volume for Winners and Losers: Taxation and Other Motives for Stock Trading (1986)Do after-tax returns affect mutual fund inflows? (2002)The Information Content of Idiosyncratic Volatility (2009)
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References

  • 1977DEBT AND TAXES*2,896 cited
  • 1991The Pricing of Exchange Rate Risk in the Stock Market613 cited
  • 1981A Re-Examination of Traditional Hypotheses about the Term Structure of Interest Rates588 cited
  • 1978THE INSIGNIFICANCE OF BANKRUPTCY COSTS TO THE THEORY OF OPTIMAL CAPITAL STRUCTURE472 cited
  • 1983Capital Market Equilibrium with Personal Tax472 cited
  • 1983Optimal Stock Trading with Personal Taxes: Implications for Prices and the Abnormal January Returns409 cited
  • 1985On the Relevance of Debt Maturity Structure348 cited
  • 1984Optimal stock trading with personal taxes308 cited
  • 1984Optimal bond trading with personal taxes265 cited
  • 1976THE STRONG CASE FOR THE GENERALIZED LOGARITHMIC UTILITY MODEL AS THE PREMIER MODEL OF FINANCIAL MARKETS212 cited
  • 1976The Strong Case for the Generalized Logarithmic Utility Model as the Premier Model of Financial Markets193 cited
  • 1988Bankruptcy and Agency Costs: Their Significance to the Theory of Optimal Capital Structure154 cited
  • 1991Interest Rate Uncertainty and the Optimal Debt Maturity Structure122 cited
  • 1988TAX‐TIMING OPTIONS, LEVERAGE, AND THE CHOICE OF CORPORATE FORM27 cited
  • 1988Tax Options and Corporate Capital Structures

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