The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions:
This paper uses U.S. panel data to estimate the effect of expected effective corporate tax rates on firm's leverage. The paper directly estimates expected corporate tax rates using rational expectations. The estimated measures of the expected effective tax rates of firms are related to a contin...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1997
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Schriftenreihe: | IMF Working Papers
Working Paper No. 97/46 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper uses U.S. panel data to estimate the effect of expected effective corporate tax rates on firm's leverage. The paper directly estimates expected corporate tax rates using rational expectations. The estimated measures of the expected effective tax rates of firms are related to a continuous measure of incremental debt financing. The paper finds that expected effective tax rates are significantly and positively related to a higher level of debt financing. Simulations suggest that debt issues would double if firms were unable to shield profits and actually faced the statutory tax rate |
Beschreibung: | 1 Online-Ressource (32 p) |
ISBN: | 1451973969 9781451973969 |
Internformat
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spelling | Gropp, Reint Verfasser aut The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions Gropp, Reint Washington, D.C International Monetary Fund 1997 1 Online-Ressource (32 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 97/46 This paper uses U.S. panel data to estimate the effect of expected effective corporate tax rates on firm's leverage. The paper directly estimates expected corporate tax rates using rational expectations. The estimated measures of the expected effective tax rates of firms are related to a continuous measure of incremental debt financing. The paper finds that expected effective tax rates are significantly and positively related to a higher level of debt financing. Simulations suggest that debt issues would double if firms were unable to shield profits and actually faced the statutory tax rate Online-Ausg http://elibrary.imf.org/view/IMF001/06914-9781451973969/06914-9781451973969/06914-9781451973969.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Gropp, Reint The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title_auth | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title_exact_search | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title_exact_search_txtP | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title_full | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions Gropp, Reint |
title_fullStr | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions Gropp, Reint |
title_full_unstemmed | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions Gropp, Reint |
title_short | The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions |
title_sort | the effect of expected effective corporate tax rateson incremental financing decisions |
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