search query: @indexterm TAX POLICY / total: 92
reference: 44 / 92
| Author: | Graham, J. R. Lemmon, M. L. Schallheim, J. S. |
| Title: | Debt, leases, taxes, and the endogeneity of corporate tax status. |
| Journal: | Journal of Finance
1998 : FEB, VOL. 53:1, p. 131-162 |
| Index terms: | COMPANY TAXATION TAX POLICY CAPITAL STRUCTURE OF COMPANIES LEASING DEBT MANAGEMENT |
| Language: | eng |
| Abstract: | The paper provides evidence that corporate tax status is endogenous to financing decisions, which induces a spurious relation between measures of financial policy and many commonly used tax proxies. Using a forward-looking estimate of before-financing corporate marginal tax rates, it documents a negative relation between operating leases and a positive relation between debt levels and tax rates. This is the first unambigious evidence supporting the hypothesis that low tax rate firms lease more, and have lower debt levels, than high tax rate firms. |
SCIMA