Taxes Depress Corporate Borrowing: Evidence from Private Firms
Abstract: We re-examine the relation between taxes and corporate leverage, using variation in state corporate income tax rates. In contrast with prior research, we document that corporate leverage increases following tax cuts for both privately held and publicly listed firms. We use an estimated dynamic equilibrium model to show that tax cuts result in lower default spreads and more distant default thresholds. These effects outweigh the loss of benefits from the interest tax deduction and lead to higher leverage, especially for privately held firms. Overall, debt tax shields appear to be a secondary capital structure consideration
- Standort
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Deutsche Nationalbibliothek Frankfurt am Main
- Umfang
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Online-Ressource, 49 S.
- Sprache
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Englisch
- Anmerkungen
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Veröffentlichungsversion
begutachtet
- Erschienen in
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IHS Working Paper ; Bd. 32
- Klassifikation
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Wirtschaft
- Schlagwort
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Körperschaftsteuer
Halbeinkünfteverfahren
Steuerpolitik
Kapitalstruktur
Unternehmen
Finanzierung
Wohlfahrtseffekt
- Ereignis
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Veröffentlichung
- (wo)
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Mannheim
- (wer)
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SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
- (wann)
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2021
- Ereignis
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Veröffentlichung
- (wo)
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Wien
- (wer)
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Institut für Höhere Studien (IHS), Wien
- (wann)
-
2021
- Urheber
- Beteiligte Personen und Organisationen
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Institut für Höhere Studien (IHS), Wien
- URN
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urn:nbn:de:0168-ssoar-75845-6
- Rechteinformation
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Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Letzte Aktualisierung
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25.03.2025, 13:45 MEZ
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Beteiligte
- Ivanov, Ivan T.
- Pettit, Luke
- Whited, Toni Marion
- Institut für Höhere Studien (IHS), Wien
- SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
Entstanden
- 2021
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