Effects of Taxation PDF Download

Author: Dan Throop Smith
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 332

View

Book Description

Author: Mariateresa Fiocca
Publisher: Dartmouth Publishing Company
ISBN:
Category : Business & Economics
Languages : en
Pages : 168

View

Book Description

Author: Alan J. Auerbach
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 60

View

Book Description
This paper reviews the theory and evidence regarding the impact of taxation on corporate financial policy. Starting from a basic characterization of the classical corporate income tax and its effects, the analysis focuses on three areas of research: equity policy, debt-equity decisions, and choices regarding ownership structure and organizational form. The discussion stresses the distinction between nominal and more fundamental financial differences for example, in the relationship between borrowing and leasing and that financial policy involves choices not only among different underlying policies but also among characterizations of a given policy. The final section offers some brief reflections on the implications of continuing financial innovation

Author: Donald Eugene Farrar
Publisher: Forgotten Books
ISBN: 9780331971217
Category : Business & Economics
Languages : en
Pages : 50

View

Book Description
Excerpt from Note on Taxes, Corporate Financial Policy and the Cost of Capital to the Firm Accordingly, an attempt will be made here to accomplish two fairly limited objections: first, the effect on investment value of different tax structures will be used pedgogically to illustrate the basic under lying theses propounded by Modigliani and Miller; and second, an attempt will be made simultaneously to broaden this structure to one that more nearly approximates the combination of corporate, personal income and capital gains taxes encountered in the U. S.otoday. The paper, accordingly, proceeds by developing a series of increas ingly complex tax structures, and examining their impact on a hypothetical corporation's Optimal debt and dividend policies. Case 1 discusses the no-tax world laid out in [1] by Modigliani and Miller. Case 2 examines the impact on these policies of corporate income taxes alone; essentially the argument presented by mam in Case 3 considers the impact on ra tional debt and dividend decisions of differential personal income and capital gains taxes; considered partially by msm.in And Case h inte grates the preceeding material into a more complex world containing simul taneously corporate, personal income and capital gains taxes. A summary completes the exposition. As always, rational behavior by both corporate and private investors. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Author: Donald Eugene Farrar
Publisher: Palala Press
ISBN: 9781379156390
Category : Business & Economics
Languages : en
Pages : 56

View

Book Description
This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Author: John R. Graham
Publisher: Now Publishers Inc
ISBN: 1933019417
Category : Business & Economics
Languages : en
Pages : 136

View

Book Description
A Review of Taxes and Corporate Finance investigates the consequences of taxation on corporate finance focusing on how taxes affect corporate policies and firm value. A common theme is that tax rules affect corporate incentives and decisions. A second emphasis is on research that describes how taxes affect costs and benefits. A Review of Taxes and Corporate Finance explores the multiple avenues for taxes to affect corporate decisions including capital structure decisions, organizational form and restructurings, payout policy, compensation policy, risk management, and the use of tax shelters. The author provides a theoretical framework, empirical predictions, and empirical evidence for each of these areas. Each section concludes with a discussion of unanswered questions and possible avenues for future research. A Review of Taxes and Corporate Finance is valuable reading for researchers and professionals in corporate finance, corporate governance, public finance and tax policy.

Author: Dan T. Smith
Publisher:
ISBN: 9780827720121
Category :
Languages : en
Pages : 301

View

Book Description

Author: Mark Gertler
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 54

View

Book Description
This paper develops a simple model of corporate financial structure intended to formalize the macroeconomic concern over excessive leverage. In particular, we attempt to rationalize why firms designing an optimal capital structure would choose a level of debt that leaves them heavily exposed to macroeconomic risk. Our starting point is a variant of the "corporate control" model often used to motivate debt as the optimal financial contract. We modify this framework in two ways. First, we include common risks, interpretable as business cycle risks, as well as idiosyncratic risks. Second, we include corporate and investor-level taxes, and consider the implications of a net tax bias against equity finance. The tax distortion confronts firms with a tradeoff ex ante between the costs of equity finance and the costs of increased exposure to macroeconomic risk accompanying debt finance. In this regard, an equilibrium with "excessive leverage" is possible. Further, despite the possibility of renegotiation, debt is in general less effective than equity in insulating the firm against aggregate risk. Our model leads to the prediction that individual firm dividends may vary with macroeconomic conditions, even after controlling for the effects of relevant firm-specific performance measures, such as earnings. We present some formal econometric evidence in support of this prediction, using a panel of individual corporations. Evidence on some related predictions is also presented

Author: Stewart C. Myers
Publisher:
ISBN: 9781332284009
Category : Business & Economics
Languages : en
Pages : 42

View

Book Description
Excerpt from Taxes, Corporate Financial Policy and the Return to Investors: Comment 290-67 Professors Farrar and Selwyn have made an Important contribution to the theory of optimal capital structure. However their note does not exhaust the implications of their analysis. The purpose of this comment is, first, to push their argument somewhat further and, second, to consider the implications of their findings. The topics discussed are: Section I: Some qualifications II: Transaction costs, III: The possibility of "negative leverage," IV: An extension to capital budgeting decisions and V: Implications. Credit should be given at the outset to Professor Franco Modigliani, who first noted the possibility of negative leverage for corporations. I. A Restatement of the Argument, with Qualifications. The following discussion is restricted to Farrar and Selwyn's "Case 4," in which corporate income, personal income, and capital gains all are taxed. Several additional assumptions will be adopted in order to keep the exposition as brief and simple as possible. The first two are: 1. That net income of the hypothetical firm is not expected to 2 grow or decline over time; and 2. That the firms dividend policy is optimal - i.e., stock is always repurchased in lieu of paying cash dividends. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Author: J. Gregory Ballentine
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 0

View

Book Description