Arbeitspapier
Italy's ACE tax and its effect on a firm's leverage
This article describes the new ACE-type system implemented in Italy since 2012. The authors first show that this system reduces but does not eliminate the financial distortion due to interest deductibility. Using a dataset of Italian companies, the authors analyze the impact of this relief on Italian firm capital structure. Despite the permanence of a tax advantage and its gradual implementation, the ACE relief is estimated to reduce significantly leverage. By decreasing default risk it is also expected to reduce systemic risk.
- Language
-
Englisch
- Bibliographic citation
-
Series: Economics Discussion Papers ; No. 2012-31
- Classification
-
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
- Subject
-
ACE
business taxation
leverage
Unternehmensbesteuerung
Eigenkapital
Steuerbegünstigung
Kapitalstruktur
Italien
- Event
-
Geistige Schöpfung
- (who)
-
Panteghini, Paolo
Parisi, Maria Laura
Pighetti, Francesca
- Event
-
Veröffentlichung
- (who)
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Kiel Institute for the World Economy (IfW)
- (where)
-
Kiel
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Panteghini, Paolo
- Parisi, Maria Laura
- Pighetti, Francesca
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2012
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Oil price collapse and firm leverage in resource-dependent countries
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Macroeconomic Uncertainty and Firm Leverage
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Firm leverage and investment during the cirsis
Leverage over the firm life cycle, firm growth, and aggregate fluctuations
Interbank market integration, loan rates, and firm leverage
Oil price collapse and firm leverage in resource-dependent countries
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The incidence of an extended ACE corporation tax
Ownership concentration, firm life cycle, and leverage: Evidence from Italian family firms