In this study, we use cross-sectional regressions to estimate the value of the debt-tax shield. Recognizing that debt … future profitability on firm value and debt rather than regressing firm value on debt and profitability. Reversing the …. Our estimated value for the debt-tax shield is approximately 40 percent (ten percent) of debt balances (firm value), net …

advantage of debt in domestic manufacturing companies in India. Incremental financing decisions have been analyzed through … debt on leverage decisions of Indian firms. After including personal taxes, marginal taxes become insignificant. The study …

and risky levels of debt ratios. Since debt has tax advantages over other sources of capital, this paper employs simulated … analyses three different measures of leverage; debt to asset (DAR) ratio, incremental debt to total assets ratio (DINC) and … debt to capital employed (DAR1) ratio. For each measure of leverage ratio, different specifications based on four variants …

This paper analyzes the relationship between corporate taxation, firm age and debt. We adapt a standard model of … faced with. Our model suggests that the debt ratio is positively associated with the corporate tax rate, and negatively with … firm age. Further, we predict that the tax-induced advantage of debt is more important for older than for younger firms. To …

reality. Using a sample of leverage increasing cases resulting from public debt issuances in US markets between 1996 and 2006 … with the fact that, in practice, more profitable firms usually have easier access to debt markets. …

This paper analyzes the relationship between corporate taxation, firm age and debt. We adapt a standard model of … faced with. Our model suggests that the debt ratio is positively associated with the corporate tax rate, and negatively with … firm age. Further, we predict that the tax-induced advantage of debt is more important for older than for younger firms. To …

This paper studies pension fund design in the context of investment in the debt and equity of a firm. We employ a …

taxation, a firm's age and its debt to asset ratio. To test these hypotheses empirically, we use a cross-section of 405 …,000 firms from 35 European countries and 126 NACE 3-digit industries. In line with previous research, we find that a firm's debt … ratio increases with the corporate tax rate. Further, we observe that older firms exhibit smaller debt ratios than their …

This paper explores whether corporate tax bias toward debt finance differs between banks and nonbanks, using a large …