TAXATION AND CORPORATE USE OF DEBT: IMPLICATIONS FOR TAX POLICY

Roger Gordon

49 citations0/0 files storedNational Tax Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Taxation and Avoidance Corporate Finance and Governance Fiscal Policies and Political Economy

Abstract

There is growing empirical evidence showing thai taxes encourage use of debt in large profitable firms and discourage it in less profitable firms. There has been debate, though, on the source of any non-tax costs from debt finance offsetting the tax advantages of debt. This paper lays out competing hypotheses, notes that the existing empirical evidence is more supportive of a "lemons" model in which lack of information about the viability of borrowing firms inhibits use of debt, and then explores how tax policy should be designed in response.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 49 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 1984Corporate financing and investment decisions when firms have information that investors do not have 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers 1973Job Market Signaling 1958The Cost of Capital, Corporation Finance and the Theory of Investment 2019American Economic Review 1961Dividend Policy, Growth, and the Valuation of Shares

Cited by

2011Tax Biases to Debt Finance 2012The Distinct Equity of the Debt-Equity Distinction 2011The Tax Elasticity of Corporate Debt: A Synthesis of Size and Variations 2017On the Interdependency of Profit Shifting Channels and the Effectiveness of Anti-Avoidance Legislation 2012Debt, Taxes, and Banks 2017TAXATION AND CORPORATE DEBT: ARE BANKS ANY DIFFERENT?

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.