Valuation of the debt tax shield

Journal of Finance

Volumn 57, Issue 5, 2002, Pages 2045-2073

  Kemsley, Deen ^a   Nissim, Doron ^a  

^a YALE SCHOOL OF MANAGEMENT   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0043172448     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/0022-1082.00488     Document Type: Article

References (30)

1. Andrade, Gregor, and Steven N. Kaplan, 1998, How costly is financial (not economic) distress? Evidence from highly levered transactions that became distressed, Journal of Finance 53, 1443-1493.
2. Bradley, Michael, Gregg Jarrell, and E. Han Kim, 1984, On the existence of an optimal capital structure, Journal of Finance 39, 857-878.
3. Copeland, Tom E., Tim Koller, and Jack Murrin, 2000, Valuation: Measuring and Managing the Value of Companies, 3rd ed. (John Wiley & Sons, New York).
4. Copeland, Tom E., and J. Fred Weston, 1988, Financial Theory and Corporate Policy, 3rd ed., Addison-Wesley.
5. DeAngelo, Harry, and Ronald W. Masulis, 1980, Optimal capital structure under corporate and personal taxation, Journal of Financial Economics 8, 3-29.
6. Engel, Ellen, Merle Erickson, and Edward Maydew, 1999, Debt equity hybrid securities, Journal of Accounting Research 37, 249-273.
7. Fama, Eugene F., and Kenneth R. French, 1992, The cross-section of expected stock returns, Journal of Finance 47, 427-465.
8. Fama, Eugene F., and Kenneth R. French, 1997, Industry costs of equity, Journal of Financial Economics 43, 153-193.
9. Fama, Eugene F., and Kenneth R. French, 1998, Taxes, financing decisions, and firm value, Journal of Finance 53, 819-843.
10. Fama, Eugene F., and James D. MacBeth, 1973, Risk, return and equilibrium: Empirical tests, Journal of Political Economy 81, 607-636.
11. Fischer, Edwin, Robert Heinkel, and Josef Zechner, 1989, Dynamic capital structure choice: Theory and tests, Journal of Finance 44, 19-40.
12. Givoly, Dan, Carla Hahn, Aharon Ofer, and Oded Sarig, 1992, Taxes and capital structure: Evidence from firms' response to the tax reform act of 1986, Review of Financial Studies 5, 331-355.
13. Graham, John R., 1996, Debt and the marginal tax rate, Journal of Financial Economics 42, 187-221.
14. Graham, John R., 1999, Do personal taxes affect corporate financing decisions? Journal of Public Economics 73, 147-185.
15. Graham, John R., 2000, How big are the tax benefits of debt? Journal of Finance 55, 1901-1940.
16. Graham, John R., Michael Lemmon, and James Schallheim, 1998, Debt leases, taxes, and the endogeneity of corporate tax status, Journal of Finance 53, 131-162.
17. Green, Richard C., and Burton Hollifield, 2001, The personal-tax advantages of equity, Journal of Financial Economics, forthcoming.
18. Kothari, S.P., 2001, Capital markets research in accounting, Journal of Accounting and Economics 31, 105-231.
19. Liu, Jing, Doron Nissim, and Jacob Thomas, 2002, Equity valuation using multiples, Journal of Accounting Research 40, 135-172.
20. Long, Michael S., and Ileen B. Malitz, 1985, Investment patterns and financial leverage, in B.M. Friedman, ed.: Corporate Capital Structures in the United States (University of Chicago Press, Chicago, IL).
21. MacKie-Mason, Jeffrey K., 1990, Do taxes affect corporate financing decisions? Journal of Finance 45, 1471-1493.
22. Masulis, Ronald W., 1980, The effects of capital structure changes on security prices: A study of exchange offers, Journal of Financial Economics 8, 139-177.
23. Miller, Merton H., 1977, Debt and taxes, Journal of Finance 32, 261-276.
24. Miller, Merton H., and Franco Modigliani, 1966, Some estimates of the cost of capital to the electric utility industry, 1954-57, The American Economic Review 56, 333-391.
25. Modigliani, Franco, and Merton H. Miller, 1963, Corporate income taxes and the cost of capital: A correction, American Economic Review 53, 433-443.
26. Penman, Stephen H., 1996, The articulation of price-earnings ratios and market-to-book ratios and the evaluation of growth, Journal of Accounting Research 34, 235-259.
27. Rajan, Raghuram G., and Luigi Zingales, 1995, What do we know about capital structure choice? Some evidence from international data, Journal of Finance 50, 1421-1460.
28. Titman, Sheridan, and Roberto Wessels, 1988, The determinants of capital structure choice, Journal of Finance 43, 1-19.
29. Trezevant, Robert, 1992, Debt financing and tax status: Tests of the substitution effect and the tax exhaustion hypothesis using firms responses to the Economic Recovery Tax Act of 1981, Journal of Finance 45, 1557-1568.
30. Weiss, Lawrence A., 1990, Bankruptcy resolution: Direct costs and violation of priority of claims, Journal of Financial Economics 27, 285-314.