EconStor >
Deutsche Bundesbank, Forschungszentrum, Frankfurt am Main >
Discussion Papers, Deutsche Bundesbank >

Please use this identifier to cite or link to this item:

Full metadata record

DC FieldValueLanguage
dc.contributor.authorHartmann-Wendels, Thomasen_US
dc.contributor.authorStein, Ingriden_US
dc.contributor.authorStöter, Alwinen_US
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.publisherDeutsche Bundesbank Frankfurt a. M.en_US
dc.relation.ispartofseriesDiscussion Paper, Deutsche Bundesbank 18/2012en_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
Appears in Collections:Discussion Papers, Deutsche Bundesbank

Files in This Item:
File Description SizeFormat
726774529.pdf401.67 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.