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Sunday, May 3, 2020 | History

3 edition of Taxation and capital structure found in the catalog.

Taxation and capital structure

Leora Klapper

Taxation and capital structure

evidence from a transition economy

by Leora Klapper

  • 113 Want to read
  • 25 Currently reading

Published by World Bank in [Washington, D.C .
Written in English

    Subjects:
  • Corporations -- Taxation -- Croatia,
  • Small business -- Taxation -- Croatia

  • Edition Notes

    StatementLeora Klapper, Konstantinos Tzioumis.
    SeriesPolicy research working paper -- 4753, Policy research working papers (Online) -- 4753.
    ContributionsTzioumis, Konstantinos., World Bank.
    Classifications
    LC ClassificationsHG3881.5.W57
    The Physical Object
    FormatElectronic resource
    ID Numbers
    Open LibraryOL23238040M
    LC Control Number2009655658

    both at the corporate and at the personal level, to assess the impact of taxes on capital structure. Our approach has three benefits. First, by employing panel regressions with firm- and year-fixed effects (along with other controls) we are able to provide time-series evidence that Cited by: Taxation and Capital Structure Choice - Evidence from a Panel of German Multinationals. CESifo Working Paper Series No. Number of pages: 20 Posted: 24 Nov Downloads Date Written: Abstract. This paper analyzes the impact of taxes and lending conditions on the financial structure of multinationals' foreign affiliates. The Cited by:

    Book Description. This book, first published in , presents an analysis of the taxes levied on wealth or capital – death duties, annual wealth taxes and capital gains taxes. It provides a comprehensive study of these taxes, and recommends a series of measures, including the replacement of certain taxes, that would promote equality. A final consideration in capital structure choice is the remaining uncertainty in Canada regarding the taxation of capital gains realized by venture capital limited partnerships. As is the case with all partnerships, any profits realized by the partnership are taxable in .

    Taxes and bank capital structure Glenn Schepens October Abstract This paper shows that a reduction in the tax discrimination between debt and equity funding leads to better capitalized financial institutions. In many countries, the cost of debt is tax-deductible whereas the remuneration for equity (dividends) is not deductible. Legal framework Fiscal sovereignty. Switzerland is a federal republic in which the sovereignty of the constituent states (the cantons) is limited by the enumerated powers delegated to the federal state (the Confederation) through the federal uently, the original authority to levy taxes is vested in the individual cantons of Switzerland through their constitutions.


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Taxation and capital structure by Leora Klapper Download PDF EPUB FB2

Capital Structure: The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes.

We examine the effect of increased book-tax conformity on corporate capital structure. Prior studies document a decrease in the informativeness of accounting earnings for equity markets resulting from higher book-tax conformity.

We argue that the decrease in earnings informativeness impacts equity holders more than debt holders because of the differences in payoff structures Cited by: 6.

expanded coverage of capital structure planning; coverage of OID, original issue discount; coverage of section (e), regarding loss limitation rules; Students who use Examples & Explanations: Corporate Taxation agree: the combination of the author's singular clarity and the Examples & Explanations problem format gets five stars/5(32).

International Double Taxation of Interest This book investigates the impact of thin capitalization rules and proposes an international capitalization standard to determine the adequate (i.e.

arm's length) capital structure of an : structure is an important element of capital structure (Rauh and Sufi, ), I separate debt into two major types: privately raised bank debt and publicly issued bond debt. As marginal tax rates increase, firms substitute away from private bank debt and into public bond debt.

Lee and Kuo (), for instance, suggest that the likelihood of generating taxable income and the use of debt financing in the capital structure of a given firm is significant.

Chapter 1: The Essential Structure of the Income Tax; Chapter 2: Consumption Taxation and Our Hybrid Income/Consumption; Chapter 3: Ethical Debates, Economic Theories, and Real-World; Chapter 4: The Contours of “Capital Expenditure” v. Expense” (or Current Depreciation) Unit II: Two Types of Gross Income: Chapter 5: § 61(a)(1) Compensation4/5(2).

We construct a database from 48 primary studies. Relevant studies were identified by comprehensively searching the EconLit database for empirical literature on the tax sensitivity of corporate capital structure choices. More specifically, we searched the database for Cited by:   We find both corporate and personal income taxes to be significant determinants of capital structure.

Based on ex post observed summary statistics, across Organisation for Economic Co-Operation and Development (OECD) countries, taxes appear to be as important as other traditional variables in explaining capital structure by: Interestingly, among the determinants of capital structure, taxation is probably the most debated.

According to the influential trade-off theory of debt, the optimal level of debt in a firm’s capital structure is determined by the balance of the tax shield provided by debt and the present value of financial distress costs (Myers, ). Taxation, imposition of compulsory levies on individuals or entities by governments.

Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. Learn more about taxation in this article.

The optimal structure would be to have virtually no equity at all, i.e. a capital structure consisting of % debt.

In the real world. If capital structure is irrelevant in a perfect market, then imperfections which exist in the real world must be the cause of its relevance. point, the magnitude of the documented effect of taxes on capital structure is “not always large” (p.

The key contribution of this paper is the use of a multitude of shifts in statu-tory tax rates, both at the corporate and at the personal level, to assess the impact of Cited by: "The authors examine the effects of taxation on financing policy using the corporate tax reform in in Croatia as a natural experiment.

Since the extant literature on tax effects on capital structure studies listed firms in developed countries, it is worth investigating whether the same results apply to privately-held, small and medium size firms in transition economies. the weighted average cost of capital.

• The Unlevered value of the firm, VU, can be computed by discounting the FCFs at the firm’s unlevered cost of capital, the pretax WACC. • The value of the interest tax shield can be found by comparing the difference between VL. Aswath Damodaran 3 The Objective in Decision Making n In traditional corporate finance, the objective in decision making is to maximize the value of the firm.

n A narrower objective is to maximize stockholder wealth. When the stock is traded and markets are viewed to be efficient, the objective isFile Size: KB. The authors also provide a new approach to rating methodology highlighting the need for including financial flow discounting, the incorporation of rating parameters (in particular, financial ratios) into the modern theory of capital structure - BFO theory.

This book aims to change our understanding of corporate finance, investments, taxation. Taxation on hedge funds is similar to that on private equity, at least in the United States. A hedge fund is another form of pass-through entity, allowing the fund itself to operate free of.

Journal of Financial Economics 8 () North-Holland Publishing Company OPTIMAL CAPITAL STRUCTURE UNDER CORPORATE AND PERSONAL TAXATION* Harry DeANGELO University of Washington, Seattle, WAUSA Ronald W MASULIS University of California, Los Angeles, CAUSA Securities and Exchange Commission, Washington, DCUSA Received Cited by: Examples & Explanations: Corporate Taxation offers a remarkably clear treatment of a complex area of tax ifying Subchapter C, Cheryl D.

Block methodically explains all of the tax issues that arise from the formation of the corporation to liquidation/5(18). In this paper, we analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific dividend payout policy on a firm’s capital structure choice.

Our analysis is based on data firms from 11 Central and Eastern European (CEE) countries over the period – Our results show a significant positive impact from the net tax benefit of debt on the Cited by: 1.Chapter Capital structure. Chapter learning objectives.

Upon completion of this chapter you will be able to: define, calculate and explain the significance to a company's financial position and financial risk of its level of the following ratios.Taxation and Capital Structure Choice: The Role of Ownership of the relation between corporate taxation and capital structure.

book marginal tax rate does a better job of explaining Author: Robert Krämer.