TY - JOUR PY - 2008 SN - 1972-4918 T1 - Quale interazione tra l'imposta sulle società e la corporate governance JO - STUDI ECONOMICI DA - 12/15/2008 12:00:00 AM DO - UR - http://www.francoangeli.it/Riviste/Scheda_rivista.aspx?idArticolo=34809 AU - Castaldo, Angelo AU - Crudo, Gianpaolo SP - 121 EP - 163 IS - 94 VL - LXIII LA - IT AB - Interaction between Corporate Tax and Corporate Governance - A Comparison between IRES 2003 and IRES 2007 This paper studies the interaction between tax system and corporate governance, investigating the change in distortionary effects produced on companies’ financial choices by the last two corporate tax regimes in Italy. In particular, the paper concentrates on the different approach provided to interest deductibility. The comparison between IRES 2003 and IRES 2007, has been conducted through a microsimulation model able to point out net present value of hypothetical investment and effective inframarginal tax rate (EITR). Furthermore, to identify which investment profile has gained from the reform, we provide a rating linked to the financial structure of the investment. We argue that interest deductibility can provide incentives to companies to adopt unbalanced financial structures that implies, on one hand, in a microeconomic perspective, an incentive to management moral hazard, and, on the other, in a macroeconomic perspective, an increase in endogenous financial instability. We show that IRES 2007 performs better than IRES 2003 in reducing the magnitude of both distortions PB - FrancoAngeli ER -