Vigésima novena sesión Seminario Interno FEN

El pasado lunes 30 de Mayo se llevó a cabo la vigésima sexta sesión del seminario interno de FEN donde se expone trabajos en progreso de académicos y avances de tesis de estudiantes. Este evento fue desarrollado en las dependencias del Departamento de Administración, Facultad de Economía y Negocios, Universidad de Chile. 

En esta oportunidad Leonardo Hernandez, alumno de la Facultad de Economía y Negocios, Universidad de Chile, apoyado por Juan Pablo Torres, académico del Departamento de Administración, Facultad de Economía y Negocios, Universidad de Chile, presentará su tesis titulada Firm Financing in Chile After the 2014-15 Tax Reform: Debt of Equity?”, la cual trataThis paper analyzes the effects of the 2014-15 Chilean tax reform on firms’ incentives to retain earnings and to finance their operations with equity versus debt. The analysis comprises a comparison with the situation pre-reform to draw conclusions with regards to firm’s valuation. The approach used consists of analyzing the effects of the tax reform on the cash flows received by investors. Although the final effect is specific to the firm and the investor, as final cash flows depend on the firm’s dividends payout ratio and each investor’s personal income tax rate, results show that in general the reform lessens the incentives of firms to retain earnings. Also, simulations show that the majority of firms would choose the accrued-based system and if that is not possible will choose debt over equity. The cash-based system becomes the preferred option only when elusion (or tax avoidance) is possible.