tax benefit of debt (net and gross of investor taxes) and the debt ratio. A 10% increase in the net (gross) marginal tax … benefit of debt causes a 1.5% (1.6%) increase in the debt ratio, ceteris paribus. The results are robust to various … specifications like using changes in debt or debt to capital ratios. A significantly positive effect of taxes on the debt ratio can …

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 …

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 …

, 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 …

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 …

. Despite the reduction in the tax preference for debt finance, capital structures have not changed much, but dividends have …