Tax Avoidance And Capital Structure

Author : Alessandro Gabrielli
Publisher : SIDREA Series in Accounting and Business Administration
Page : 0 pages
File Size : 40,5 Mb
Release : 2024-06-11
Category : Electronic
ISBN : 3031309820

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Tax Avoidance and Capital Structure by Alessandro Gabrielli Pdf

This book provides a comprehensive overview of the implications of tax avoidance for a firm's capital structure, highlighting the key role played by free cash flow and agency conflicts. First, the book provides an outline of the theories and empirical evidence concerning the role of taxes in the Theory of Capital Structure. It reviews the studies investigating the relationship between agency conflicts and capital structure. The book explores the role of free cash flow and agency conflicts in the relationship between tax avoidance and capital structure. In the final section, the results of an empirical investigation conducted on a sample of U.S. public firms are also presented. The empirical research examines whether and how tax avoidance is associated with debt covenant violation across the stages of the corporate life cycle. Specifically, the research uses the concept of the corporate life cycle stage to analyse whether and how the association between tax avoidance and debt covenant violation varies in different agency settings. Consistent with the hypotheses drawn on the Agency Theory, the findings of the empirical research suggest life cycle stages moderate the association between tax avoidance and debt covenant violation. Overall, this book sheds light on the potential implications of tax avoidance activities for a firm's capital structure. The book will be of interest to both experienced and early-stage scholars interested in the topic. Moreover, the book will also be of interest to policymakers, investors, analysts, lenders, and other market participants.

Author : Alessandro Gabrielli
Publisher : Springer Nature
Page : 103 pages
File Size : 46,7 Mb
Release : 2023-05-23
Category : Business & Economics
ISBN : 9783031309809

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Tax Avoidance and Capital Structure by Alessandro Gabrielli Pdf

This book provides a comprehensive overview of the implications of tax avoidance for a firm’s capital structure, highlighting the key role played by free cash flow and agency conflicts. First, the book provides an outline of the theories and empirical evidence concerning the role of taxes in the Theory of Capital Structure. It reviews the studies investigating the relationship between agency conflicts and capital structure. The book explores the role of free cash flow and agency conflicts in the relationship between tax avoidance and capital structure. In the final section, the results of an empirical investigation conducted on a sample of U.S. public firms are also presented. The empirical research examines whether and how tax avoidance is associated with debt covenant violation across the stages of the corporate life cycle. Specifically, the research uses the concept of the corporate life cycle stage to analyse whether and how the association between tax avoidance and debt covenant violation varies in different agency settings. Consistent with the hypotheses drawn on the Agency Theory, the findings of the empirical research suggest life cycle stages moderate the association between tax avoidance and debt covenant violation. Overall, this book sheds light on the potential implications of tax avoidance activities for a firm’s capital structure. The book will be of interest to both experienced and early-stage scholars interested in the topic. Moreover, the book will also be of interest to policymakers, investors, analysts, lenders, and other market participants.

Author : Sandra Martinho Fernandes
Publisher : Unknown
Page : 437 pages
File Size : 54,5 Mb
Release : 2019
Category : Double taxation
ISBN : 9087225466

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International Double Taxation of Interest by Sandra Martinho Fernandes Pdf

Author : Ruud A. de Mooij
Publisher : International Monetary Fund
Page : 25 pages
File Size : 55,7 Mb
Release : 2011-05-03
Category : Business & Economics
ISBN : 9781463935139

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Tax Biases to Debt Finance by Ruud A. de Mooij Pdf

Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.

Author : Sebastian Beer,Ruud A. de Mooij,Ms.Li Liu
Publisher : International Monetary Fund
Page : 45 pages
File Size : 49,6 Mb
Release : 2018-07-23
Category : Business & Economics
ISBN : 9781484363997

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International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots by Sebastian Beer,Ruud A. de Mooij,Ms.Li Liu Pdf

This paper reviews the rapidly growing empirical literature on international tax avoidance by multinational corporations. It surveys evidence on main channels of corporate tax avoidance including transfer mispricing, international debt shifting, treaty shopping, tax deferral and corporate inversions. Moreover, it performs a meta analysis of the extensive literature that estimates the overall size of profit shifting. We find that the literature suggests that, on average, a 1 percentage-point lower corporate tax rate will expand before-tax income by 1 percent—an effect that is larger than reported as the consensus estimate in previous surveys and tends to be increasing over time. The literature on tax avoidance still has several unresolved puzzles and blind spots that require further research.

Author : Thomas Hartmann-Wendels
Publisher : Unknown
Page : 48 pages
File Size : 46,6 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1306009562

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Tax Incentives and Capital Structure Choice by Thomas Hartmann-Wendels Pdf

This paper provides new evidence that taxes affect capital structure choice, using a unique and comprehensive panel data set which covers 86,173 German non-financial firms over the years 1973-2008. Following the Graham methodology to simulate marginal tax rates, we find a statistically and economically significant positive relationship between the marginal 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 also be identified in a partial adjustment model.

Author : Leonard Barolli
Publisher : Springer Nature
Page : 609 pages
File Size : 51,5 Mb
Release : 2022-06-16
Category : Technology & Engineering
ISBN : 9783031088124

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Complex, Intelligent and Software Intensive Systems by Leonard Barolli Pdf

Software intensive systems are systems, which heavily interact with other systems, sensors, actuators, devices, other software systems, and users. More and more domains are involved with software intensive systems, e.g., automotive, telecommunication systems, embedded systems in general, industrial automation systems, and business applications. Moreover, the outcome of web services delivers a new platform for enabling software intensive systems. Complex systems research is focused on the overall understanding of systems rather than its components. Complex systems are very much characterized by the changing environments in which they act by their multiple internal and external interactions. They evolve and adapt through internal and external dynamic interactions. The development of intelligent systems and agents, which is each time more characterized by the use of ontologies and their logical foundations, builds a fruitful impulse for both software intensive systems and complex systems. Recent research in the field of intelligent systems, robotics, neuroscience, artificial intelligence, and cognitive sciences is a very important factor for the future development and innovation of software intensive and complex systems. The aim of the book “Complex, Intelligent and Software Intensive Systems” is to deliver a platform of scientific interaction between the three interwoven challenging areas of research and development of future ICT-enabled applications: software intensive systems, complex systems, and intelligent systems.

Author : Jennifer Blouin,Harry Huizinga,Luc Laeven,Gaëtan Nicodème,European Commission. Directorate-General for Taxation and Customs Union
Publisher : Unknown
Page : 47 pages
File Size : 51,7 Mb
Release : 2014
Category : Capital
ISBN : 9279354299

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Thin Capitalization Rules and Multinational Firm Capital Structure by Jennifer Blouin,Harry Huizinga,Luc Laeven,Gaëtan Nicodème,European Commission. Directorate-General for Taxation and Customs Union Pdf

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential data on the internal and total leverage of foreign affiliates of US multinationals, we find that thin capitalization rules affect multinational firm capital structure in a significant way. Specifically, restrictions on an affiliate's debt-to-assets ratio reduce this ratio on average by 1.9%, while restrictions on an affiliate's borrowing from the parent-to-equity ratio reduce this ratio by 6.3%. Also, restrictions on borrowing from the parent reduce the affiliate's debt to assets ratio by 0.8%, which shows that rules targeting internal leverage have an indirect effect on the overall indebtedness of affiliate firms. The impact of capitalization rules on affiliate leverage is higher if their application is automatic rather than discretionary. Furthermore, we show that thin capitalization regimes have aggregate firm effects: they reduce the firm's aggregate interest expense bill but lower firm valuation. Overall, our results show than thin capitalization rules, which thus far have been understudied, have a substantial effect on the capital structure within multinational firms, with implications for the firm's market valuation.

Author : Alan J. Auerbach,James R. Hines, Jr.,Joel Slemrod
Publisher : Cambridge University Press
Page : 401 pages
File Size : 49,7 Mb
Release : 2007-04-16
Category : Business & Economics
ISBN : 9781139464512

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Taxing Corporate Income in the 21st Century by Alan J. Auerbach,James R. Hines, Jr.,Joel Slemrod Pdf

This book was first published in 2007. Most countries levy taxes on corporations, but the impact - and therefore the wisdom - of such taxes is highly controversial among economists. Does the burden of these taxes fall on wealthy shareowners, or is it passed along to those who work for, or buy the products of, corporations? Can a country with high corporate taxes remain competitive in the global economy? This book features research by leading economists and accountants that sheds light on these and related questions, including how taxes affect corporate dividend policy, stock market value, avoidance, and evasion. The studies promise to inform both future tax policy and regulatory policy, especially in light of the Sarbanes-Oxley Act and other actions by the Securities and Exchange Commission that are having profound effects on the market for tax planning and auditing in the wake of the well-publicized accounting scandals in Enron and WorldCom.

Author : Myron S. Scholes,Mark A. Wolfson,Merle M. Erickson,Michelle L. Hanlon,Edward L. Maydew,Terrence J. Shevlin
Publisher : Unknown
Page : 528 pages
File Size : 43,8 Mb
Release : 2015-01-03
Category : Electronic
ISBN : 1292065575

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Taxes and Business Strategy by Myron S. Scholes,Mark A. Wolfson,Merle M. Erickson,Michelle L. Hanlon,Edward L. Maydew,Terrence J. Shevlin Pdf

For MBA students and graduates embarking on careers in investment banking, corporate finance, strategy consulting, money management, or venture capital Through integration with traditional MBA topics, Taxes and Business Strategy, Fifth Edition provides a framework for understanding how taxes affect decision-making, asset prices, equilibrium returns, and the financial and operational structure of firms. Teaching and Learning Experience This program presents a better teaching and learning experience-for you and your students: *Use a text from an active author team: All 5 authors actively teach the tax and business strategy course and provide students with relevant examples from both classroom and real-world consulting experience. *Teach students the practical uses for business strategy: Students learn important concepts that can be applied to their own lives. *Reinforce learning by using in-depth analysis: Analysis and explanatory material help students understand, think about, and retain information.

Author : OECD
Publisher : OECD Publishing
Page : 91 pages
File Size : 47,9 Mb
Release : 2013-02-12
Category : Electronic
ISBN : 9789264192744

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Addressing Base Erosion and Profit Shifting by OECD Pdf

This report presents studies and data available regarding the existence and magnitude of base erosion and profit shifting (BEPS), and contains an overview of global developments that have an impact on corporate tax matters.

Author : John R. Graham,Jana S. Raedy,Douglas A. Shackelford
Publisher : Now Pub
Page : 176 pages
File Size : 51,9 Mb
Release : 2012-11-09
Category : Business & Economics
ISBN : 1601986122

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Accounting for Income Taxes by John R. Graham,Jana S. Raedy,Douglas A. Shackelford Pdf

Accounting for Income Taxes is the most comprehensive review of AFIT research. It is designed both to introduce new scholars to this field and to encourage active researchers to expand frontiers related to accounting for income taxes. Accounting for Income Taxes includes both a primer about the rules governing AFIT (Sections 3-4) and a review of the scholarly studies in the field (Sections 5-8). The primer uses accessible examples and clear language to express essential AFIT rules and institutional features. Section 3 reviews the basic rules and institutional details governing AFIT. Section 4 discusses ways that researchers, policymakers, and other interested parties can use the tax information in financial statements to better approximate information in the tax return. The second half of the monograph reviews the extant scholarly studies by splitting the research literature into four topics: earnings management, the association between book-tax differences and earnings characteristics, the equity market pricing of information in the tax accounts, and book-tax conformity. Section 5 focuses on the use of the tax accounts to manage earnings through the valuation allowance, the income tax contingency, and permanently reinvested foreign earnings. Section 6 discusses the association between book-tax differences and earnings characteristics, namely earnings growth and earnings persistence. Section 7 explores how tax information is reflected in share prices. Section 8 reviews the increased alignment of accounting for book purposes and tax purposes. The remainder of the paper focuses on topics of general interest in the economics and econometric literatures. Section 9 highlights some issues of general importance including a theoretical framework to interpret and guide empirical AFIT studies, the disaggregated components of book-tax differences and research opportunities as the U.S. moves toward International Financial Reporting Standards (IFRS). Section 10 discusses econometric weaknesses that are common in AFIT research and proposes ways to mitigate their deleterious effects.

Author : Robert E. Evenson,Robert Eugene Evenson,Larry E. Westphal
Publisher : Unknown
Page : 144 pages
File Size : 49,8 Mb
Release : 1994
Category : Technological innovations
ISBN : UCSD:31822021769401

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Technological Change and Technology Strategy by Robert E. Evenson,Robert Eugene Evenson,Larry E. Westphal Pdf

Theoretical contributions; Technological infrastructure; Technological assets and development; International flows of technology; Technological investment in the private sector; Returns to technological activities; Policy issues.

Author : Dr. Maloth Raghu Ram
Publisher : Readworthy
Page : 192 pages
File Size : 51,9 Mb
Release : 2018-12-03
Category : Business & Economics
ISBN : 9789381510834

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Capital Structure and Firm Value by Dr. Maloth Raghu Ram Pdf

Capital Structure decision is one of the crucial decisions to be taken by a company. There are divergent views regarding Capital Structure and Firm Value. There is dearth of studies in the area of Pharma Industry regarding Capital Structure and Firm Value. Therefore, the present study seeks to answer the following questions: what are the factors determining the Capital Structure decision in Pharma sector in India? What is the relationship between select variable and company value? What is the impact of leverage on stock price volatility of Pharma Companies? Period of the study is eleven years from 2005 to 2015. The panel data regression model has been employed. It can be concluded that Debt-Equity Ratio has negative impact on capital structure of a company. It was revealed from the findings that majority of the select variables have significant impact on the capital structure. The study also brings to light the fact that leverage effect is dominant in the stock market. Findings of the present study are useful in gaining valuable insights into the intricacies of capital structure, firm value and leverage effect. The study is useful to finance managers, investors, researchers and also to academicians doing research in the area of corporate finance.

Author : Sonja Lynne Olhoft
Publisher : Unknown
Page : 224 pages
File Size : 45,9 Mb
Release : 1999
Category : Business planning
ISBN : UOM:39015042636293

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Tax Avoidance Activities of U.S. Multinational Corporations by Sonja Lynne Olhoft Pdf