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 …

Understanding the effects of marginal tax rate on debt policy is crucial not only for　considering various capital … Graham (1996)) and the debt ratio increase of Japanese firms. This result shows that the marginal tax rates significantly … affect the debt policies of Japanese firms. Corporate tax reform to produce equal treatment of equity and debt is desirable …

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 …

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 …

, a recent boom in studies offers ample support for the debt bias of taxation. Yet, studies differ considerably in effect … increases the debt-asset ratio by between 0.17 and 0.28. Responses are increasing over time, which suggests that debt bias …

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