Effects of tax integration and capital gains tax on corporate leverage

National Tax Journal

Volumn 49, Issue 1, 1996, Pages 31-54

  Schulman, Craig T ^a,b   Thomas, Deborah W ^a   Sellers, Keith F ^a   Kennedy, Duane B ^c  

^a UNIVERSITY OF ARKANSAS   (United States)

^b United States International Trade Commission   (United States)

^c UNIVERSITY OF WATERLOO   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0042856593     PISSN: 00280283     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (38)

1. American Institute of Certified Public Accountants. Proposed Statement of Tax Policy 10, Integration of the Corporate and Shareholder Tax Systems. Washington, D.C.: AICPA, 1992.
2. American Law Institute, Federal Income Tax Project. Tax Advisory Group's Draft No. 21, Reporter's Study. Philadelphia: ALI, 1992.
3. Amoako-Adu, Ben. "The Canadian Tax Reform and Its Effect on Stock Prices: A Note." The Journal of Finance 38 No. 5 (December, 1983). 1669-75.
4. Amoako-Adu, Ben, Muhannad Rashid, and M. Stebbins. "Capital Gains Tax and Equity Values: Empirical Test of Stock Price Reaction to the Introduction and Reduction of Capital Gains Tax Exemption." Journal of Banking and Finance 16 No. 2 (April, 1992): 275-87.
5. Auerbach, Alan J., and James M. Poterba. "Tax Loss Carryforwards and Corporate Tax Incentives." MIT Working Paper. Cambridge, MA. Massachusetts Institute of Technology, 1986.
6. Avi-Yonah, Reuven S. "The Treatment of Corporate Preference Items Under an Integrated Tax System: A Comparative Analysis." Tax Lawyer 44 No. 1 (Fall, 1990): 195-216.
7. Boadway, Robin, and Neil Brace. "Problems with Integrating Corporate and Personal Income Taxes in an Open Economy." Journal of Public Economics 48 No. 1 (1992): 39-66.
8. Bowman, Robert G. "The Debt Equivalence of Leases: An Empirical Investigation." The Accounting Review 55 No. 2 (April, 1980): 237-53.
9. Bradley, Michael G., Gregg A. Jarrell, and E. Han Kim. "On the Existence of an Optimal Capital Structure: Theory and Evidence." The Journal of Finance 39 No. 3 (July, 1984): 857-80.
10. Commerce Clearing House. New Zealand Master Tax Guide. Auckland: CCH, 1989.
11. DeAngelo, Harry, and Ronald W. Masulis. "Optimal Capital Structure Under Corporate and Personal Taxation." Journal of Financial Economics 8 No. 1 (March, 1980): 3-30.
12. Dhaliwal, Dan, Robert Trezevant, and Shiing-wu Wang. "Taxes, Investment-Related Tax Shields and Capital Structure." The Journal of the American Taxation Association 14 No. 1 (Spring, 1992): 1-21.
13. Feldstein, Martin, and Daniel Frisch. "Corporate Tax Integration: The Estimated Effects of Capital Accumulation and Tax Distribution of Two Integration Proposals." National Tax Journal 31 No. 1 (March, 1977): 37-52.
14. Fisher, Ernest M., Robert L. Heinkel, and Josef Zechner. "Dynamic Capital Structure Choice: Theory and Tests." The Journal of Finance 44 No. 1 (March, 1989): 19-40.
15. Givoly, Dan, Carla Hayn, Ahoron R. Ofer, and Oded Sarig. "Taxes and Capital Structure: Evidence From Firms' Response to the Tax Reform Act of 1986." The Review of Financial Studies 5 No. 2 (1992): 331-55.
16. Gourevitch, Harry G. "Corporate Tax Integration: The European Experience." Tax Lawyer 31 No. 1 (Fall, 1977): 65-112.
17. Graham, B., and G. Bromson. "Industry and Country Influences on Capital Structure: An Empirical Study of Six Asian-Pacific Countries." Asian Review of Accounting (December, 1992): 102-21.
18. Gravelle, Jane G. Corporate Tax Integration: Issues and Options. Washington, D.C.: Congressional Research Service, 1992.
19. Greene, William H. Econometric Analysis. New York: Macmillan Publishing Company, 1993.
20. Grubert, Harry, and John Mutti. "International Aspects of Corporate Tax Integration: The Contrasting Role of Debt and Equity Flows." National Tax Journal 47 No. 1 (March, 1994): 111-33.
21. Hsiao, Cheng. "Benefits and Limitations of Panel Data." Econometric Review 4 No. 1 (January, 1985): 121-74.
22. International Monetary Fund. International Financial Statistics Yearbook. Washington, D.C.: International Monetary Fund, 1991.
23. Jensen, Michael C. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." American Economic Review 76 No. 2 (May, 1986): 659-65.
24. Long, Michael S., and Ileen B. Malitz. "Investment Patterns and Financial Leverage." In Corporate Capital Structures in the United States, edited by Benjamin M. Friedman, 325-51. Chicago: University of Chicago Press, 1985.
25. MacKie-Mason, Jeffrey K. "Do Taxes Affect Corporate Financing Decisions?" The Journal of Finance 45 No. 5 (December, 1990): 1471-93.
26. Marsh, Paul. "The Choice between Equity and Debt: An Empirical Study." The Journal of Finance 37 No. 1 (March, 1982): 121-44.
27. Mulford, Charles W. "The Importance of a Market Value Measurement of Debt in Leverage Ratios: Replications and Extensions." Journal of Accounting Research 23 No. 2 (Autumn, 1985), 897-906.
28. Myers, Stewart C. "The Determinants of Corporate Borrowing." Journal of Financial Economics 5 No. 2 (1977): 147-75.
29. Myers, Stewart C, and Nicholas S. Majluf. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." Journal of Financial Economics 13 No. 2 (1984): 187-221.
30. Nadeau, Serge J., and Robert P. Strauss. "Taxation, Equity, and Growth: Exploring the Trade-Off between Shareholder Dividend Tax Relief and Higher Corporate Income Taxes." National Tax Journal 46 No. 2 (June, 1993): 161-75.
31. Poterba, James M., and Lawrence H. Summers. "The Economic Effects of Dividend Taxation." In Recent Advances in Corporate Finance, edited by Edward Altman and Marti Subrahmanyam, 227-84. Homewood: Richard D. Irwin, 1985.
32. Pozdena, Randall J. "Tax Policy and Corporate Capital Structure." Federal Reserve Bank of San Francisco Economic Review No. 4 (Fall, 1987): 37-51.
33. Scholes, Myron S., and Mark Wolfson. Taxes and Business Strategy: A Planning Approach. Englewood Cliffs, NJ: Prentice-Hall, 1992.
34. Shevlin, Terry. "Estimating Corporate Marginal Tax Rates with Asymmetric Tax Treatment of Gains and Losses." The Journal of the American Taxation Association 11 No. 2 (Spring, 1990): 51-67.
35. Taylor, John B. Macroeconomic Policy in a World Economy: From Econometric Design to Practical Operation. New York: W. W. Norton and Company, 1993.
36. Titman, Sheridan, and Roberto Wessels. "The Determinants of Capital Structure Choice." The Journal of Finance 43 No. 1 (March, 1988): 1-19.
37. U.S. Department of Treasury. Integration of the Individual and Corporate Tax Systems: Taxing Business Income Only Once. Washington, D.C.: Government Printing Office, 1992.
38. White, Halbert A. "A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity." Econometrica 48 No. 4 (July, 1980): 817-38.