Kemsley, Deen; Nissim, Doron - School of Management, Yale University - 2001
In this study, we use cross-sectional regressions to estimate the value of the debt-tax shield. Recognizing that debt …. Our estimated value for the debt-tax shield is approximately 40 percent (ten percent) of debt balances (firm value), net … of the personal tax disadvantage of debt. In addition, our estimates for the debt-tax shield vary across tax regimes and …