@techreport{Princen2012Taxes,
abstract = {In this paper, I use difference-in-differences regressions to measure how the debt tax shield affects the capital structure of a company. By comparing the financial leverage of treatment and control companies before and after the introduction of an equity tax shield, I infer the impact of the tax discrimination between debt and equity. Consistent with the theoretical prediction, the estimated results show that the introduction of an equity tax shield has a significant negative effect on the financial leverage of a company. This effect amounts to approximately 2-7%, meaning that a classical tax system encourages companies to use on average 2-7% more debt than when there is an equal tax treatment of debt and equity.},
address = {M\"{u}nchen},
author = {Savina Princen},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G30; H25; K34; 330; allowance for corporate equity; corporate financing decisions; Kapitalstruktur; Entscheidung; Unternehmensbesteuerung; Eigenkapital; Steuerliches Anrechnungsverfahren; Steuerwirkung; Belgien},
language = {eng},
number = {3713},
publisher = {CESifo},
title = {Taxes do affect corporate financing decisions: The case of Belgian ACE},
type = {CESifo working paper: Public Finance},
url = {http://hdl.handle.net/10419/55334},
year = {2012}
}
