Taxation and the Firm's Leverage Decision : A Survey of Theoretical Issues

This survey outlines various models used to analyze the impact of taxation on the firm's leverage decision. The models incorporate: i) differential taxation of household from a progressive tax system; ii) loss offsetting under the corporate tax; iii) managerial incentive to avoid moral hazard; iv) bankruptcy; and v) asymmetric information between inside and outside investors. The theory is applied to the Canadian tax system.

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Year of publication:	1986
Authors:	Bartholdy, Jan ; Fisher, Gordon ; Mintz, Jack
Institutions:	Economics Department, Queen's University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	71 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005787656