A Review of Taxes and Corporate Finance - download pdf or read online

Posted by

By John, R Graham

ISBN-10: 1933019417

ISBN-13: 9781933019413

ISBN-10: 193301993X

ISBN-13: 9781933019932

A evaluation of Taxes and company Finance investigates the implications of taxation on company finance targeting how taxes have an effect on company guidelines and enterprise worth. a standard subject is that tax ideas impact company incentives and judgements. A moment emphasis is on learn that describes how taxes impact bills and merits. A overview of Taxes and company Finance explores the a number of avenues for taxes to impact company judgements together with capital constitution judgements, organizational shape and restructurings, payout coverage, reimbursement coverage, probability administration, and using tax shelters. the writer presents a theoretical framework, empirical predictions, and empirical proof for every of those parts. each one part concludes with a dialogue of unanswered questions and attainable avenues for destiny learn. A assessment of Taxes and company Finance is effective analyzing for researchers and pros in company finance, company governance, public finance and tax coverage.

Show description

Read Online or Download A Review of Taxes and Corporate Finance PDF

Best biography & history books

Speculators and Patriots: Essays in Business Biography by R.P.T. Davenport-Hines PDF

This identify to be had in booklet structure. click on right here for additional information. stopover at our eBookstore at: www. ebookstore. tandf. co. united kingdom.

Download e-book for kindle: Piloting Palm: The Inside Story of Palm, Handspring and the by Andrea Butter

The definitive behind-the-scenes tale of the visionary group that introduced the hand held undefined. Palm insider Andrea Butter and big apple occasions columnist David Pogue -- with complete, specific cooperation of the company's founders and greater than fifty key Palm and Handspring executives -- inform the riveting story of the beginning of an always within the headlines.

Extra info for A Review of Taxes and Corporate Finance

Example text

Finally, most papers ignore the tax cost of receiving interest income from the investor’s perspective, an issue to which I now turn. 4 Empirical evidence on whether personal taxes affect corporate debt vs. equity policy Miller (1977) identifies a puzzle: the benefits of debt seem large relative to expected costs, and yet many firms do not use much debt. Miller proposes that the personal tax cost of interest income (relative to the personal tax cost of equity) is large enough at the margin to completely offset the corporate tax advantage of debt.

1988). If the corporate tax function is convex, the expected present value tax benefit of short-term debt declines with interest rate volatility, while the tax deductions with long-term debt are fixed. Therefore, long-term debt is preferred when interest rates are volatile. , 1995) because option value increases with security maturity and long-term bond prices are more sensitive to changes in interest rates. Prediction 9 Debt maturity increases with interest rate volatility. Kim et al. (1995) find that debt maturity increases with interest rate volatility but Guedes and Opler (1996) do not.

This variable has a large value for firms that do not currently have NOLs and that do not expect to experience a loss in the near future. Harwood and Manzon predict a positive relation between this tax variable and debt maturity. They argue that firms with large values for the tax variable are likely to fully utilize tax deductions in the future, and therefore lock into long-term debt now. In new analysis for this chapter, I perform a more direct test on the hypothesis that uncertainty about future tax-paying status reduces the use of long-term debt.

Download PDF sample

A Review of Taxes and Corporate Finance by John, R Graham


by William
4.0

Rated 4.92 of 5 – based on 17 votes