Gerardo Perez Cavazos

Assistant Professor of Business Administration

Gerardo Pérez Cavazos is an Assistant Professor of Business Administration in the Accounting & Management Unit. He teaches the first-year M.B.A. course Financial Reporting and Control.  

His research focuses on the role of information in firm decision making and information processing in financial markets. He is also interested in the role of taxation in corporate policies.

Professor Pérez Cavazos received a PhD in accounting and an MBA from The University of Chicago Booth School of Business. Prior to his graduate studies, he earned a bachelor’s degree in economics at the Instituto Tecnológico Autónomo de México and worked in investment banking at Barclays Capital.

Gerardo Pérez Cavazos is an Assistant Professor of Business Administration in the Accounting & Management Unit. He teaches the first-year M.B.A. course Financial Reporting and Control.  

His research focuses on the role of information in firm decision making and information processing in financial markets. He is also interested in the role of taxation in corporate policies.

Professor Pérez Cavazos received a PhD in accounting and an MBA from The University of Chicago Booth School of Business. Prior to his graduate studies, he earned a bachelor’s degree in economics at the Instituto Tecnológico Autónomo de México and worked in investment banking at Barclays Capital.

Working Papers

  1. Tax-Minded Executives and Corporate Tax Strategies: Evidence from the 2013 Tax Hikes

    Gerardo Pérez Cavazos and Andreya M. Silva

    Exploiting the increase in personal tax rates due to the American Taxpayer Relief Act and Healthcare Act, we identify tax-minded executives who exhibit a preference for personal tax savings. We find that 2,281 top executives strategically realized their built-in capital gains prior to the tax hikes to save nearly $741 million in personal taxes in 2012. These executives also (1) make payout policy choices that save their shareholders taxes and (2) make tax strategy choices that save their firms cash taxes. Their firms altered payout policies in 2012, distributing $8 billion in special and accelerated dividends, to save shareholders nearly $700 million in taxes. Further, each tax-minded executive reduces a firm's cash effective tax rate by 0.28%.

    Keywords: Executives; capital gain; dividends; Effective tax rate; tax avoidance; Taxation; Management Teams; Business and Shareholder Relations;

    Citation:

    Pérez Cavazos, Gerardo, and Andreya M. Silva. "Tax-Minded Executives and Corporate Tax Strategies: Evidence from the 2013 Tax Hikes." Harvard Business School Working Paper, No. 16-034, September 2015. View Details
  2. Sharing Private Information with Customers: Strategic Default and Lender Learning

    Gerardo Pérez Cavazos

    I use a unique data set of loans to small business owners to examine whether lenders face negative externalities when they share private information with borrowers. When lenders grant debt forgiveness to borrowers, borrowers communicate that information to other borrowers, who are then more likely to strategically default on their own obligations. This strategic default contagion is economically large. When the lender doubles debt forgiveness, contagion causes the default rate to increase by 10.9% on average. Using an exogenous shock to the lender's forgiveness policy, I further show that as the lender learns about the extent of borrower communication it tightens its debt forgiveness and origination policies to reduce information spillovers and mitigate the default contagion. Collectively, these results provide new evidence on the strategic interactions between a firm and its customers in a dynamic information environment.

    Keywords: information trnasmission; communication; strategic default contagion; learning; Information; Corporate Disclosure; Consumer Behavior; Borrowing and Debt;

    Citation:

    Pérez Cavazos, Gerardo. "Sharing Private Information with Customers: Strategic Default and Lender Learning." Harvard Business School Working Paper, No. 16-033, September 2015. View Details