?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F2735%2F&rft.title=Ownership%2C+Taxes+and+Default&rft.creator=Nicodano%2C+Giovanna&rft.creator=Regis%2C+Luca&rft.subject=HB+Economic+Theory&rft.subject=HG+Finance&rft.description=This+paper+determines+ownership+and+leverage+of+two+units+facing+a+tax-%0D%0Abankruptcy+trade-o%EF%BF%BD.+Connected+units+have+higher+leverage+and+lower+tax+burden%2C%0D%0Abecause+of+internal+support+through+both+bailouts+and+corporate+dividends.+Owner-%0D%0Aship+adjusts+to+additional+tax+provisions.+A+hierarchical+group+with+a+wholly-owned%0D%0Asubsidiary+results+from+Thin+Capitalization+rules.+The+presence+of+corporate+divi-%0D%0Adend+taxes+generates+horizontal+groups%2C+or+a+Special+Purpose+Vehicle%2C+or+a+private%0D%0Aequity+fund.+Combinations+of+tax+provisions+contain+tax+savings%2C+debt+and+default%0D%0Ain+connected+units.+No+bailout+provisions%2C+such+as+the+Volcker+rule%2C+succeed+in%0D%0Areducing+leverage+and+default.&rft.publisher=IMT+Institute+for+Advanced+Studies+Lucca&rft.date=2015-07&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.rights=cc_by_nc&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F2735%2F1%2FWP_2015_7%2520%25281%2529.pdf&rft.identifier=++Nicodano%2C+Giovanna+and+Regis%2C+Luca++Ownership%2C+Taxes+and+Default.++EIC+working+paper+series++%237%2F2015++++IMT+Institute+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++(Submitted)+++