haku: @author Mintz, J. / yhteensä: 5
viite: 2 / 5
| Tekijä: | Mintz, J. Smart, M. |
| Otsikko: | Tax-exempt investors and the asset allocation puzzle |
| Lehti: | Journal of Public Economics
2002 : FEB, VOL. 83:2, p. 195-216 |
| Asiasana: | INVESTORS INVESTMENT TAXATION ASSETS ALLOCATION |
| Kieli: | eng |
| Tiivistelmä: | Investors frequently hold equity m pensions and other tax exempt savings plans despite the prediction of the standard model that they hold only bonds. The authors provide a new explanation for this empirical puzzle based on differences between tax-exempt and taxable assets in the tax treatment of capital losses. The authors show how limits on refundability of losses on taxable equities lead to diversity of investors preferences for corporate leverage on the basis of tax rates. In the simplest equilibrium of the model tax-exempt savers hold risky highly levered equities while low-bracket taxable savers hold bonds and high bracket taxpayers hold relatively safe, unleveled equities. The authors discuss the implications of tax-exempts for risk taking and agency costs within the firm. |
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