Inflation and Capital Structure
AbstractThis essay is a contribution to the empirical literature on the effect of inflation tax on capital structure. A simple empirical model considering the main results of the current theoretical development is studied, using microdata from a number of American corporations.
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Bibliographic InfoPaper provided by EconWPA in its series Finance with number 0111001.
Length: 15 pages
Date of creation: 04 Nov 2001
Date of revision:
Note: Type of Document - Acrobat PDF; pages: 15
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inflation tax; capital structure; firm value; debt-capital ratio;
Other versions of this item:
- G3 - Financial Economics - - Corporate Finance and Governance
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ACC-2001-11-05 (Accounting & Auditing)
- NEP-ALL-2001-11-05 (All new papers)
- NEP-MAC-2001-10-29 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- DeAngelo, Harry & Masulis, Ronald W., 1980. "Optimal capital structure under corporate and personal taxation," Journal of Financial Economics, Elsevier, vol. 8(1), pages 3-29, March.
- Dokko, Yoon, 1989. "Are Changes in Inflation Expectations Capitalized into Stock Prices? A Micro-firm Test for the Nominal Contracting Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 309-17, May.
- Kelly, William A, Jr & Miles, James A, 1989. "Capital Structure Theory and the Fisher Effect," The Financial Review, Eastern Finance Association, vol. 24(1), pages 53-73, February.
- Franks, Julian R & Schwartz, Eduardo S, 1991. "The Stochastic Behaviour of Market Variance Implied in the Prices of Index Options," Economic Journal, Royal Economic Society, vol. 101(409), pages 1460-75, November.
- Kim, Moon K & Wu, Chunchi, 1988. "Effects of Inflation on Capital Structure," The Financial Review, Eastern Finance Association, vol. 23(2), pages 183-200, May.
- Miller, Merton H, 1977. "Debt and Taxes," Journal of Finance, American Finance Association, vol. 32(2), pages 261-75, May.
- Hodder, James E & Senbet, Lemma W, 1990. " International Capital Structure Equilibrium," Journal of Finance, American Finance Association, vol. 45(5), pages 1495-1516, December.
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