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Finance and Financial Management Commons

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Marquette University

Department of Finance Working Papers

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Full-Text Articles in Finance and Financial Management

(Wp 2012-01) Territorial Tax System Reform And Corporate Financial Policies, Matteo Arena, George Kutner Oct 2012

(Wp 2012-01) Territorial Tax System Reform And Corporate Financial Policies, Matteo Arena, George Kutner

Department of Finance Working Papers

We examine the effect of a permanent change to a country income repatriation tax system on a set of corporate financial policies. In 2009 Japan and UK switched from a worldwide system to a territorial system for the taxation of earnings repatriated by their multinational firms. Due to the relatively high corporate tax rate in Japan and UK, the new system effectively reduced the tax liabilities of most multinational firms when repatriating earnings. We find that after the change Japanese and UK firms accumulate less cash, pay out larger amounts to shareholders through dividends and share repurchases, and invest less …


(Wp 2011-01) It Takes Two: The Incidence And Effectiveness Of Co-Ceos, Matteo Arena, Stephen P. Ferris, Emre Unlu Mar 2011

(Wp 2011-01) It Takes Two: The Incidence And Effectiveness Of Co-Ceos, Matteo Arena, Stephen P. Ferris, Emre Unlu

Department of Finance Working Papers

This study examines the phenomenon of co-CEOs within publicly traded firms. Although shared executive leadership is not widespread, it occurs within some very prominent firms. We find that co-CEOs generally complement each other in terms of educational background or executive responsibilities. Our results show that firms most likely to appoint co-CEOs have lower leverage, a more limited firm focus, less independent board structure, fewer advising directors, lower institutional ownership and greater levels of merger activity. The governance structure of co-CEO firms suggest that co-CEOships can serve as an alternative governance mechanism, with co-CEO mutual monitoring substituting for board or external …