Found 25 article(s) for author 'Mihir Desai'

Reform Tax Law to Keep US Firms at Home

Reform Tax Law to Keep US Firms at Home. Mihir Desai, July 24, 2014, Opinion. “Editor’s Note. Given a veritable flood over the last year of corporate “inversions”—US companies that reincoporate in other countries to take advantage of favorable tax rates and business regulations—lawmakers in Washington D.C. are debating how to respond. The arguments split, often along partisan lines, from overhauling the US corporate tax to punishing companies who choose to move elsewhere. On July 22, Mihir A. Desai, Miuzho Financial Group Professor of Finance at Harvard Business School, testified…” Link Verified October 11, 2014

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Trade Credit and Taxes

Trade Credit and Taxes. Mihir Desai, C. Fritz Foley, May 2012, Paper. “This paper analyzes the extent to which tax differences affect the use of trade credit. U.S.-owned affiliates in low-tax countries use trade credit to lend, whereas those in high-tax countries use trade credit to borrow: 10% lower local tax rates are associated with net trade credit positions that are 1.4% higher as a fraction of sales. The use of trade credit to get capital out of low-tax, low-return environments is also illustrated by the temporary repatriation tax holiday in 2005, which was used most intensively by affiliates with positive net trade credit positions.Link

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Tax Incentives for Affordable Housing: The Low Income Housing Tax Credit

Tax Incentives for Affordable Housing: The Low Income Housing Tax Credit. Mihir Desai, Monica Singhal, January 2010, Paper. “The Low Income Housing Tax Credit (LIHTC) represents a novel tax expenditure program that employs ‘investable’ tax credits to spur production of low-income rental housing. While it has grown into the largest source of new affordable housing in the U.S. and its structure is now being replicated in other programs, the LIHTC has also drawn skepticism and calls for its repeal. We provide estimates of tax expenditures under this program and discuss pricing, efficiency, and distributional effects of the program …” Link

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Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises

Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Crises. Mihir A. Desai, C. Fritz Foley, November 2008. “This paper examines how financial constraints and product market exposures determine the response of multinational and local firms to sharp depreciations. U.S. multinational affiliates increase sales, assets, and investment significantly more than local firms during, and subsequent to, depreciations. Differing product market exposures do not explain these differences in performance. Instead, a differential ability to circumvent financial constraints is a significant determinant…” Link

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