Author Archives: Ali Sanati

Comparing Capital Allocation Efficiency in Public and Private Equity Markets 

By | May 22, 2023

At its core, the economy’s essential role is to allocate resources toward the most productive investment prospects. Traditionally, stock markets have been particularly efficient at allocating capital to firms with the most promising investment projects. In recent times, however, private equity (PE) markets have experienced significant expansion and have provided more capital through private than… Read More »

How Does Removing the Tax Benefits of Debt Affect Firms? Evidence from the 2017 US Tax Reform

By | August 3, 2021

Almost all countries around the world have historically allowed businesses to write off interest expenses against taxable income. Critics argue that the tax-favored status of debt has created a corporate debt pileup, thereby exacerbating economic downturns. This argument, which gained more attention after the 2008 global financial crisis, implicitly assumes that the tax incentives have… Read More »