Corporate Tax And Financing Decisions: An Emerging Market Experience

Acta Universitatis Danubius: Oeconomica

关键词: tax shelter;    capital structure;    leverage;    financi ng;    firms;   

DOI  :  

来源: DOAJ

【 摘 要 】

The objective of this study is to determine the significance of the taxbenefits in explaining observedleverage ratios amongst firms in Nigeria. Toinvestigate how the results of previous studies and traditional theories on financialleverage compare with the real situation in the Nigeria corporate environment. Thedifferential impact of tax treatment of debt on corporate financial policy indeveloped countries. The parameters of debt ratios are estimated by fitting multiplelinear regression after this equation-l=f (τ r, s, v, π, m, c, σ). Our dataset covers across-section of 60 quoted firms from Nigerian stock Markets over a ten yearperiod (1996-2005). The tax benefit of debt approximately equals fifteen (15)percent of firm value. However, this tax advantage does notseem to explainobserved debt ratios since we couldnotobtain a statistically significant coefficientfor the marginal tax rate.The provision of empirical evidence in support of knowntheories.

【 授权许可】

Unknown