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dc.contributor.authorHartmann-Wendels, Thomasen_US
dc.contributor.authorStein, Ingriden_US
dc.contributor.authorStöter, Alwinen_US
dc.date.accessioned2012-10-04en_US
dc.date.accessioned2012-10-11T12:59:40Z-
dc.date.available2012-10-11T12:59:40Z-
dc.date.issued2012en_US
dc.identifier.isbn978-3-86558-830-2en_US
dc.identifier.urihttp://hdl.handle.net/10419/64815-
dc.description.abstractThis 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.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt, M.en_US
dc.relation.ispartofseriesDiscussion Paper, Deutsche Bundesbank 18/2012en_US
dc.subject.jelG32en_US
dc.subject.jelH20en_US
dc.subject.ddc330en_US
dc.subject.keyworddebten_US
dc.subject.keywordcapital structureen_US
dc.subject.keywordmarginal tax rateen_US
dc.subject.keywordcorporate taxesen_US
dc.subject.keywordpersonal taxesen_US
dc.titleTax incentives and capital structure choice: Evidence from Germanyen_US
dc.typeWorking Paperen_US
dc.identifier.ppn726774529en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdps:182012-
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