{"id":"https://openalex.org/W1998692946","doi":"https://doi.org/10.1111/jacf.12057","title":"How Much Do Private Equity Funds Benefit From Debt\u2010related Tax Shields?","display_name":"How Much Do Private Equity Funds Benefit From Debt\u2010related Tax Shields?","publication_year":2014,"publication_date":"2014-03-01","ids":{"openalex":"https://openalex.org/W1998692946","doi":"https://doi.org/10.1111/jacf.12057","mag":"1998692946"},"language":"en","primary_location":{"id":"doi:10.1111/jacf.12057","doi":"https://doi.org/10.1111/jacf.12057","is_oa":false,"landing_page_url":"https://doi.org/10.1111/jacf.12057","pdf_url":null,"source":{"id":"https://openalex.org/S4394735563","display_name":"Journal of applied corporate finance","issn_l":"1078-1196","issn":["1078-1196","1745-6622","1936-8216"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":["abdc-a","anvur-scientific","fnege-4","jufo-1","norway-1","poland-40","russia-white-list-2","vabb-shw"],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Applied Corporate Finance","raw_type":"journal-article"},"volume":null,"type":"article","is_traditional":true,"indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"green","oa_url":"https://doi.org/10.2139/ssrn.2204336","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5087435264","display_name":"Alexander Knauer","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I27963644","display_name":"HHL Leipzig Graduate School of Management","ror":"https://ror.org/00vjd4k74","country_code":"DE","type":"education","lineage":["https://openalex.org/I27963644"]},{"id":"https://openalex.org/I926574661","display_name":"Leipzig University","ror":"https://ror.org/03s7gtk40","country_code":"DE","type":"education","lineage":["https://openalex.org/I926574661"]}],"countries":["DE"],"is_corresponding":false,"raw_author_name":"Alexander Knauer","raw_affiliation_strings":["ALEXANDER KNAUER is a doctoral candidate at the HHL Leipzig Graduate School of Management in Germany. He studied Business Administration at the University of Leipzig, HHL Leipzig Graduate School of Management and at the University of Victoria, British Columbia"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"ALEXANDER KNAUER is a doctoral candidate at the HHL Leipzig Graduate School of Management in Germany. He studied Business Administration at the University of Leipzig, HHL Leipzig Graduate School of Management and at the University of Victoria, British Columbia","institution_ids":["https://openalex.org/I27963644","https://openalex.org/I926574661"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5070714350","display_name":"Alexander D.F. Lahmann","orcid":"https://orcid.org/0000-0003-3344-2553","observed_orcids":["https://orcid.org/0000-0003-3344-2553"]},"institutions":[{"id":"https://openalex.org/I27963644","display_name":"HHL Leipzig Graduate School of Management","ror":"https://ror.org/00vjd4k74","country_code":"DE","type":"education","lineage":["https://openalex.org/I27963644"]},{"id":"https://openalex.org/I75951250","display_name":"Freie Universit\u00e4t Berlin","ror":"https://ror.org/046ak2485","country_code":"DE","type":"education","lineage":["https://openalex.org/I75951250"]}],"countries":["DE"],"is_corresponding":false,"raw_author_name":"Alexander Lahmann","raw_affiliation_strings":["ALEXANDER LAHMANN is Junior Professor in M&A of SME at the HHL Leipzig Graduate School of Management. He graduated in Economics from the Freie University in Berlin"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"ALEXANDER LAHMANN is Junior Professor in M&A of SME at the HHL Leipzig Graduate School of Management. He graduated in Economics from the Freie University in Berlin","institution_ids":["https://openalex.org/I27963644","https://openalex.org/I75951250"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5009994015","display_name":"Magnus Pfl\u00fccke","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I27963644","display_name":"HHL Leipzig Graduate School of Management","ror":"https://ror.org/00vjd4k74","country_code":"DE","type":"education","lineage":["https://openalex.org/I27963644"]}],"countries":["DE"],"is_corresponding":false,"raw_author_name":"Magnus Pfl\u00fccke","raw_affiliation_strings":["MAGNUS PFL\u00dcCKE is a doctoral candidate with HHL Leipzig Graduate School of Management and a CFA charterholder. He graduated in Business Administration from ESB Reutlingen and ICADE Madrid"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"MAGNUS PFL\u00dcCKE is a doctoral candidate with HHL Leipzig Graduate School of Management and a CFA charterholder. He graduated in Business Administration from ESB Reutlingen and ICADE Madrid","institution_ids":["https://openalex.org/I27963644"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5057311852","display_name":"Bernhard Schwetzler","orcid":"https://orcid.org/0000-0003-2281-9183","observed_orcids":["https://orcid.org/0000-0003-2281-9183"]},"institutions":[{"id":"https://openalex.org/I27963644","display_name":"HHL Leipzig Graduate School of Management","ror":"https://ror.org/00vjd4k74","country_code":"DE","type":"education","lineage":["https://openalex.org/I27963644"]}],"countries":["DE"],"is_corresponding":false,"raw_author_name":"Bernhard Schwetzler","raw_affiliation_strings":["BERNHARD SCHWETZLER is chair of Financial Management and Banking at the HHL Leipzig Graduate School of Management and a member of the scientific advisory board of the German Private Equity and Venture Capital Association BVK"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"BERNHARD SCHWETZLER is chair of Financial Management and Banking at the HHL Leipzig Graduate School of Management and a member of the scientific advisory board of the German Private Equity and Venture Capital Association BVK","institution_ids":["https://openalex.org/I27963644"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":3,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":{"value":2900,"currency":"USD","value_usd":2900},"apc_paid":null,"fwci":3.2546,"has_fulltext":false,"cited_by_count":7,"citation_normalized_percentile":{"value":0.91955324,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":87,"max":97},"biblio":{"volume":"26","issue":"1","first_page":"85","last_page":"93"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T11903","display_name":"Private Equity and Venture Capital","score":0.9390000104904175,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T11903","display_name":"Private Equity and Venture Capital","score":0.9390000104904175,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.04899999871850014,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12675","display_name":"Financial Reporting and Valuation Research","score":0.00570000009611249,"subfield":{"id":"https://openalex.org/subfields/1408","display_name":"Strategy and Management"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/private-equity-funds","display_name":"private equity funds","score":0.8460000157356262},{"id":"https://openalex.org/keywords/leveraged-buyouts","display_name":"leveraged buyouts","score":0.9279999732971191},{"id":"https://openalex.org/keywords/debt-tax-shield","display_name":"debt tax shield","score":0.8980000019073486},{"id":"https://openalex.org/keywords/corporate-financing-decisions","display_name":"corporate financing decisions","score":0.7419999837875366}],"concepts":[{"id":"https://openalex.org/C45971065","wikidata":"https://www.wikidata.org/wiki/Q1058381","display_name":"Leveraged buyout","level":3,"score":0.7326172590255737},{"id":"https://openalex.org/C117131394","wikidata":"https://www.wikidata.org/wiki/Q17141900","display_name":"Tax shield","level":5,"score":0.5425451993942261},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.48756593465805054},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.47315797209739685},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.46672120690345764},{"id":"https://openalex.org/C71110296","wikidata":"https://www.wikidata.org/wiki/Q476115","display_name":"Private equity","level":2,"score":0.453821063041687},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.4521189332008362},{"id":"https://openalex.org/C153083717","wikidata":"https://www.wikidata.org/wiki/Q6535263","display_name":"Leverage (statistics)","level":2,"score":0.424452543258667},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.3926585912704468},{"id":"https://openalex.org/C551662922","wikidata":"https://www.wikidata.org/wiki/Q2346630","display_name":"Tax reform","level":2,"score":0.30087417364120483},{"id":"https://openalex.org/C74939039","wikidata":"https://www.wikidata.org/wiki/Q7603703","display_name":"State income tax","level":3,"score":0.1614035665988922},{"id":"https://openalex.org/C100001284","wikidata":"https://www.wikidata.org/wiki/Q2248246","display_name":"Public economics","level":1,"score":0.15556567907333374},{"id":"https://openalex.org/C172008318","wikidata":"https://www.wikidata.org/wiki/Q3683077","display_name":"Gross income","level":4,"score":0.10800027847290039},{"id":"https://openalex.org/C119857082","wikidata":"https://www.wikidata.org/wiki/Q2539","display_name":"Machine learning","level":1,"score":0.0},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.0}],"mesh":[],"locations_count":3,"locations":[{"id":"doi:10.1111/jacf.12057","doi":"https://doi.org/10.1111/jacf.12057","is_oa":false,"landing_page_url":"https://doi.org/10.1111/jacf.12057","pdf_url":null,"source":{"id":"https://openalex.org/S4394735563","display_name":"Journal of applied corporate finance","issn_l":"1078-1196","issn":["1078-1196","1745-6622","1936-8216"],"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":["abdc-a","anvur-scientific","fnege-4","jufo-1","norway-1","poland-40","russia-white-list-2","vabb-shw"],"host_organization":null,"host_organization_name":null,"host_organization_lineage":[],"host_organization_lineage_names":[],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Journal of Applied Corporate Finance","raw_type":"journal-article"},{"id":"doi:10.2139/ssrn.2204336","doi":"https://doi.org/10.2139/ssrn.2204336","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.2204336","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},{"id":"pmh:oai:RePEc:bla:jacrfn:v:26:y:2014:i:1:p:85-93","doi":null,"is_oa":false,"landing_page_url":"http://hdl.handle.net/10.1111/jacf.12057","pdf_url":null,"source":{"id":"https://openalex.org/S4306401271","display_name":"RePEc: Research Papers in Economics","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I77793887","host_organization_name":"Federal Reserve Bank of St. Louis","host_organization_lineage":["https://openalex.org/I77793887"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"article"}],"best_oa_location":{"id":"doi:10.2139/ssrn.2204336","doi":"https://doi.org/10.2139/ssrn.2204336","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.2204336","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":0,"referenced_works":[],"related_works":["https://openalex.org/W1936190233","https://openalex.org/W1830215985","https://openalex.org/W7072113382","https://openalex.org/W2284567547","https://openalex.org/W1599079427","https://openalex.org/W3162568909","https://openalex.org/W4384469124","https://openalex.org/W7020729081","https://openalex.org/W7100159066","https://openalex.org/W7112336599"],"abstract_inverted_index":{"In":[0,53],"2008":[1],"the":[2,25,44,63,69,72,79,86,114,121,125,129,138,156,168,173,181,205,220,236,246,251,278],"German":[3,59],"government":[4],"enacted":[5],"a":[6,101,152,209,216,270],"measure":[7],"designed":[8],"to":[9,19,42,137,146,186,196,243,280],"curb":[10],"excessive":[11],"leverage":[12,45,214],"in":[13,24,49,67,149,172,194,199,212,219,287],"LBOs":[14,60],"by":[15,93,167,250],"limiting":[16],"tax\u2010deductible":[17,37],"interest":[18,142],"30%":[20],"of":[21,46,57,74,82,104,113,135,140,155,175,222,238,253,262],"EBITDA.":[22],"And":[23],"U.S.,":[26],"legislators":[27],"are":[28,40,100,144,231],"currently":[29],"reviewing":[30],"several":[31],"regulatory":[32],"measures,":[33],"including":[34],"limits":[35,136],"on":[36,131,202,273],"interest,":[38],"that":[39,95,128,240,265,277],"intended":[41],"reduce":[43],"portfolio":[47],"companies":[48],"U.S.":[50],"LBO":[51,96,105,132,141,177,188,213],"funds.":[52],"their":[54,83,191,203],"recent":[55],"study":[56,91,126],"56":[58],"transacted":[61],"after":[62],"tax":[64,76,98,160,247],"law":[65],"change":[66,190,198,218],"2008,":[68],"authors":[70,182,206],"analyze":[71],"importance":[73],"debt\u2010related":[75],"savings":[77,161],"and":[78],"economic":[80],"consequences":[81],"reduction":[84],"for":[85,165],"PE":[87,223],"business":[88,192],"model.":[89],"The":[90,255],"begins":[92],"confirming":[94],"debt":[97,239],"shields":[99],"material":[102],"component":[103],"purchase":[106,178],"prices,":[107],"contributing":[108],"as":[109,111],"much":[110],"20%":[112],"average":[115],"estimated":[116],"total":[117],"enterprise":[118],"value.":[119],"At":[120],"same":[122],"time,":[123],"however,":[124],"finds":[127],"effects":[130],"fund":[133],"returns":[134],"taxdeductibility":[139],"payments":[143],"likely":[145],"be":[147],"modest,":[148],"part":[150],"because":[151],"large":[153],"portion":[154],"value":[157],"from":[158,285],"expected":[159],"is":[162],"effectively":[163],"paid":[164],"upfront":[166],"private":[169,281],"equity":[170,282],"firm":[171],"form":[174],"higher":[176],"prices.":[179],"Moreover,":[180],"do":[183,244],"not":[184],"expect":[185,207],"see":[187],"funds":[189],"model":[193],"response":[195],"this":[197],"taxdeductibility.":[200],"Based":[201],"findings,":[204],"neither":[208],"significant":[210,232],"decline":[211],"nor":[215],"notable":[217],"pricing":[221],"deals.":[224],"As":[225],"finance":[226],"scholars":[227],"have":[228,241,267],"suggested,":[229],"there":[230],"benefits":[233],"associated":[234],"with":[235,245],"use":[237],"nothing":[242],"shield":[248],"provided":[249],"deductibility":[252],"interest.":[254],"authors'":[256],"results":[257],"provide":[258],"yet":[259],"another":[260],"piece":[261],"evidence":[263],"suggesting":[264],"taxes":[266],"at":[268],"most":[269],"second\u2010order":[271],"effect":[272],"corporate":[274],"financing":[275],"decisions\u2014and":[276],"gains":[279],"come":[283],"mainly":[284],"improvements":[286],"operating":[288],"performance.":[289]},"counts_by_year":[{"year":2021,"cited_by_count":1},{"year":2017,"cited_by_count":1},{"year":2016,"cited_by_count":3},{"year":2015,"cited_by_count":1},{"year":2014,"cited_by_count":1}],"updated_date":"2026-11-11T12:16:26.678958","created_date":"2016-06-24T00:00:00"}