IDEAS home Printed from https://ideas.repec.org/a/bla/finrev/v45y2010i3p845-872.html
   My bibliography  Save this article

What are the Capital Structure Determinants for Tax‐Exempt Organizations?

Author

Listed:
  • Geoffrey Peter Smith

Abstract

I study the determinants of capital structure in the absence of tax incentives. I find that debt use is positively related to asset tangibility, growth, and size, and negatively related to age, liquidity, and profitability. Tax‐exempt sector‐specific findings indicate that debt is also positively related to the efficacy of state laws against the misuse of assets and to the percentage of decision makers that are paid and negatively related to decision‐maker compensation and to charitable contributions. Religious organizations most commonly borrow from internal sources, those in education use tax‐exempt bonds, while human services organizations use mortgages and notes payable.

Suggested Citation

  • Geoffrey Peter Smith, 2010. "What are the Capital Structure Determinants for Tax‐Exempt Organizations?," The Financial Review, Eastern Finance Association, vol. 45(3), pages 845-872, August.
    • Handle: RePEc:bla:finrev:v:45:y:2010:i:3:p:845-872
    DOI: 10.1111/j.1540-6288.2010.00274.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-6288.2010.00274.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6288.2010.00274.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sohrabi, Narges & Movaghari, Hadi, 2020. "Reliable factors of Capital structure: Stability selection approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 296-310.
    2. Owen Nyang'oro, 2016. "Determinants of Capital Structure of Listed Firms in Kenya and the Impact of Corporate Tax," Working Papers 329, African Economic Research Consortium, Research Department.
    3. Harvey S. Rosen & Alexander J.W. Sappington, 2016. "To Borrow or Not to Borrow? An Analysis of University Leverage Decisions," Working Papers 249, Princeton University, Department of Economics, Center for Economic Policy Studies..
    4. Rafal Koziarski, 2013. "Analiza ryzyka przedsiębiorstwa na przykładzie przedsiębiorstwa z branży 35 - Wytwarzanie, przesyłanie, dystrybucja i handel energią elektryczną. Risk analysis of the firm in Sector 35 - Production of," Working Papers hal-00917794, HAL.
    5. Harvey S. Rosen & Alexander J. W. Sappington, 2016. "To Borrow or Not to Borrow? An Analysis of University Leverage Decisions," NBER Working Papers 21951, National Bureau of Economic Research, Inc.
    6. Rosen, Harvey S. & Sappington, Alexander J.W., 2016. "To borrow or not to borrow? An analysis of university leverage decisions," Research in Economics, Elsevier, vol. 70(1), pages 170-185.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:finrev:v:45:y:2010:i:3:p:845-872. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/efaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.