TY  - RPRT
N2  - This paper determines ownership and leverage of two units facing a tax-
bankruptcy trade-o?. Connected units have higher leverage and lower tax burden,
because of internal support through both bailouts and corporate dividends. Owner-
ship adjusts to additional tax provisions. A hierarchical group with a wholly-owned
subsidiary results from Thin Capitalization rules. The presence of corporate divi-
dend taxes generates horizontal groups, or a Special Purpose Vehicle, or a private
equity fund. Combinations of tax provisions contain tax savings, debt and default
in connected units. No bailout provisions, such as the Volcker rule, succeed in
reducing leverage and default.
M1  - imt_eic_working_paper
PB  - IMT Institute for Advanced Studies Lucca
SN  - 2279-6894
A1  - Nicodano, Giovanna
A1  - Regis, Luca
UR  - http://eprints.imtlucca.it/2735/
Y1  - 2015/07//
KW  - JEL Classification Codes: G32
KW  -  H25
KW  -  H32
KW  -  L22 - Keywords: Ownership structure
KW  -  Capital structure
KW  -  Dividend taxes
KW  -  Thin Capitalization
KW  -  Groups
KW  -  Securitization
KW  -  Private equity.
AV  - public
TI  - Ownership, Taxes and Default
EP  - 38
ID  - eprints2735
ER  -