The effect of tax on capital structure under uncertainty: Model and empirical evidence based on prospect theory

Proceedings of 2007 International Conference on Management Science and Engineering, ICMSE'07 (14th)

Volumn , Issue , 2007, Pages 1700-1706

  Zhang, Bo Tao ^a   Li, Yan Xi ^a   Wang, Yang ^a   Zheng, Chun Yan ^a  

^a DALIAN UNIVERSITY OF TECHNOLOGY   (China)

Author keywords

Capital structure; Carry forwards; Debt; Net operation loss; Prospect; Tax; Theory

Indexed keywords

INDUSTRIAL ECONOMICS; INDUSTRIAL RELATIONS; REGRESSION ANALYSIS; TAXATION; UNCERTAINTY ANALYSIS;

CAPITAL STRUCTURE; DEBT; NET OPERATION LOSS; TAX RATES;

INVENTORY CONTROL;

EID: 43549117922     PISSN: None     EISSN: None     Source Type: Conference Proceeding    
DOI: 10.1109/ICMSE.2007.4422087     Document Type: Conference Paper

References (22)

1. J.R. Graham C.R. Harvey The theory and practice of corporate finance: Evidence from the field[.T] Journal of Financial Economics 61 187 243 2001
2. R.H. Gordon Y. Lee Do taxes affect corporate debt policy? Evidence from U.S. corporate tax return data[J] Journal of Public Economics 82 195 224 2001
3. D. Bondt W.F. Palm C. Wolff Introduction to the special issue on behavioral finance[J] Journal of Empirical Finance 11 4 423 427 2004
4. D. Kahneman A. Tversky Prospect theory: An analysis of decision under risk[J] Econometica 47 263 291 1979
5. X. Guanchun Q. Yinleng Debt tax shield model under revenue uncertainty-Extension to MM's Tax s hield model[J] 9 39 44 2005
6. M. Bradly G. Jarrell E.H. Kim On the existence of an optimal capital structure: Theory and evidences[J] Journal of Finance 39 857 878 1984
7. R. Dammon L. Senbet The effect of taxes and depreciation on corporate investment and financial leverage[J] Journal of Finance 43 357 373 1988
8. H. DeAngelo R. Masulis Optimal capital structure under corporate and personal taxation[J] Journal of Financial Economics 8 1 3 29 1980
9. S.C. Myers N.S. Majluf Corporate financing and investment decisions when firms have information that investors do not have[J] Journal of Financial Economics 13 187 221 1984
10. M.J. Barclayand C.W. Smith The priority structure of corporate liabilities [J] Journal of Finance 50 899 917 1995
11. A. Hovakimian G. Hovakimian H. Tehranian Determinants of target capital structure: The case of dual debt and equity issues[J] Journal of Financial Economics 71 3 2004
12. J.R. Graham A review of taxes and corporate finance[J] Foundations and Trends in Finance 1 7 573 691 2006
13. J.R. Graham Proxies for the corporate marginal tax rate[J] Journal of Financial Economics 42 187 221 1996
14. Y. Wang A sensitivity analysis of income tax rate changes on listed company[J] Economic Research Journal 9 74 80 2002
15. M.J. Mackie Do taxes affect corporate financing decisions?[J] Journal of Finance 45 1471 1493 1990
16. D. Givoly C. Hyan A.R. Ofer O. Sarig Taxes and capital structrue:Evidence from firm's response to the tax reform act of 1986[J] Review of Financial Studies 5 331 355 1992
17. J.R. Graham Debt and the marginal tax rate[J] Journal of Financial Economics 41 41 73 1996
18. C. Chao R. Yulei The Determinants of capital structure of publicly listed firms in China[J] Journal of Industrial Engineering and Engineering Management 17 1 70 74 2003
19. X. Zhang J. Cai On probing of company income tax to Chinese listed company financing structure[J] 26 11 59 63 2006
20. E.O. Fischer H. Robert Z. Josef Dynamic capital structure choice: Theory and tests[J] Journal of Finance 44 1 19 40 1989