firm’s leverage significantly determines its coalmining fatality: A 10% increase in the debt ratio leads, on average, to a … 3% increase in the number of death tolls. It suggests that reducing leverage in coalmining firms can be an effective way …

We provide a tradeoff model of the capital structure that allows leverage to be a function of a firm’s choice of tax … aggressiveness. The model’s testable implications are supported empirically. Debt use is inversely related to corporate tax … credit crisis period. For the most profitable firms, debt and tax aggression are complements. Our results extend the …

This paper explores whether corporate tax bias toward debt finance differs between banks and nonbanks, using a large … conditional leverage distribution. For nonbanks, we find a U-shaped relationship between asset size and tax responsiveness …, although this pattern does not hold universally across the conditional leverage distribution. For banks, in contrast, the tax …

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

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 … and risky levels of debt ratios. Since debt has tax advantages over other sources of capital, this paper employs simulated …

zero debt and almost 22% have less than 5% book leverage ratio. Zero-leverage behavior is a persistent phenomenon. Dividend …-paying zero-leverage firms pay substantially higher dividends, are more profitable, pay higher taxes, issue less equity, and have …) ownership and longer CEO tenure are more likely to have zero debt, especially if boards are smaller and less independent. Family …

NID hereafter) on a firm’s adjusted equity for tax purposes, has mitigated the tax discrepancy between equity and debt … regressions reveal that this measure did not result in a significant change of SMEs’ leverage. In view of the discussion regarding …

leverage measures (total leverage and long-term leverage in terms of both book value and market value, respectively) this study … ownership effect. Findings-The authors find that large firms favour debt financing while profitable firms rely more on internal … capital accumulation. Intangibility and business risk increase the level of debt financing but tax has little impact on …

a dataset of CIT reforms and estimate the effect of tax rate changes on leverage, dividend policies and earnings … management of banks. The results suggest that taxation influences all three variables. Leverage increases with the CIT rate in … the first three years after the reform. The reason is that the statutory CIT rate determines the value of the debt tax …