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dc.contributor.authorPrincen, Savinaen_US
dc.date.accessioned2012-02-14en_US
dc.date.accessioned2012-02-15T17:37:31Z-
dc.date.available2012-02-15T17:37:31Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/55334-
dc.description.abstractIn 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.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Public Finance 3713en_US
dc.subject.jelG30en_US
dc.subject.jelH25en_US
dc.subject.jelK34en_US
dc.subject.ddc330en_US
dc.subject.keywordallowance for corporate equityen_US
dc.subject.keywordcorporate financing decisionsen_US
dc.subject.stwKapitalstrukturen_US
dc.subject.stwEntscheidungen_US
dc.subject.stwUnternehmensbesteuerungen_US
dc.subject.stwEigenkapitalen_US
dc.subject.stwSteuerliches Anrechnungsverfahrenen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwBelgienen_US
dc.titleTaxes do affect corporate financing decisions: The case of Belgian ACEen_US
dc.typeWorking Paperen_US
dc.identifier.ppn685239462en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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