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Effects of Tax Integration and Capital Gains Tax on Corporate Leverage

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  • Schulman, Craig T.
  • Thomas, Deborah W.
  • Sellers, Keith F.
  • Kennedy, Duane B.

Abstract

Results of a study of the effects of corporate tax integration on corporate capital structure decisions, based on integration reform in Canada and New Zealand. Shows that integration reduces corporate debt-to-equity rations--but that this effect is sensitive to changes in tax rates, particularly taxes on gains realized through stock appreciation.

Suggested Citation

  • Schulman, Craig T. & Thomas, Deborah W. & Sellers, Keith F. & Kennedy, Duane B., 1996. "Effects of Tax Integration and Capital Gains Tax on Corporate Leverage," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(1), pages 31-54, March.
    • Handle: RePEc:ntj:journl:v:49:y:1996:i:1:p:31-54
    DOI: 10.1086/NTJ41789184
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    Cited by:

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    2. Silke Rünger & Rainer Niemann & Magdalena Haring, 2019. "Investor taxation, firm heterogeneity and capital structure choice," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(4), pages 719-757, August.
    3. McClure, Ross & Lanis, Roman & Wells, Peter & Govendir, Brett, 2018. "The impact of dividend imputation on corporate tax avoidance: The case of shareholder value," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 492-514.
    4. Md. Faruk Hossain & Md. Ayub Ali, 2012. "Impact of Firm Specific Factors on Capital Structure Decision: An Empirical Study of Bangladeshi Companies," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(4), pages 163-182, August.
    5. Magdalena Haring & Rainer Niemann & Silke Rünger, 2016. "Investor Taxation, Firm Heterogeneity and Capital Structure Choice," CESifo Working Paper Series 6098, CESifo.
    6. Furkan Baser & Soner Gokten & Guray Kucukkocaoglu & Hasan Ture, 2016. "Liquidity-Profitability Tradeoff Existence In Turkey: An Empirical Investigation Under Structural Equation Modeling," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 5(2), pages 27-44.
    7. Haring, Magdalena & Niemann, Rainer & Rünger, Silke, 2016. "Investor taxation, firm heterogeneity and capital structure choice," arqus Discussion Papers in Quantitative Tax Research 210, arqus - Arbeitskreis Quantitative Steuerlehre.
    8. Muhammad Azeem Qureshi & Toseef Azid, 2006. "Did They Do It Differently? Capital Structure Choices of Public and Private Sectors in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 701-709.

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