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Steuerreform und Unternehmensfinanzierung / Tax Reform and Corporate Finance

Author

Listed:
  • Eggert Wolfgang

    () (Universität Konstanz, Fachbereich Wirtschaftswissenschaften, Zentrum für Finanzen und Ökonometrie, D-78457 Konstanz, CESifo und University of Copenhagen)

  • Weichenrieder Alfons J.

    () (Vertragsprofessor, Universität Wien, Fakultät für Wirtschaftswissenschaften und Informatik, Institut für Wirtschaftswissenschaften, Hohenstaufengasse 9, A-1010 Wien, CESifo (Universität München ifo Institut))

Abstract

This paper analyzes the change in tax preferences induced by the recent German corporate tax reform. The reform eliminates the imputation system and shifts the system towards a classical corporate tax system. However, financial preferences of corporations are largely unaffected if evaluated from the perspective of shareholders subject to the top marginal tax rate. A similar statement holds for the incentives to carry out share repurchases that in Germany have been allowed only recently. This paper argues that the much-discussed elimination of capital gains taxation for corporations abolishes a tax preference for new equity finance of affiliated corporations.

Suggested Citation

  • Eggert Wolfgang & Weichenrieder Alfons J., 2002. "Steuerreform und Unternehmensfinanzierung / Tax Reform and Corporate Finance," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 222(5), pages 531-555, October.
  • Handle: RePEc:jns:jbstat:v:222:y:2002:i:5:p:531-555
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    References listed on IDEAS

    as
    1. Givoly, Dan, et al, 1992. "Taxes and Capital Structure: Evidence from Firms' Response to the Tax Reform Act of 1986," Review of Financial Studies, Society for Financial Studies, vol. 5(2), pages 331-355.
    2. Gordon, Roger H. & Lee, Young, 2001. "Do taxes affect corporate debt policy? Evidence from U.S. corporate tax return data," Journal of Public Economics, Elsevier, vol. 82(2), pages 195-224, November.
    3. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-329, May.
    4. Graham, John R., 1999. "Do personal taxes affect corporate financing decisions?," Journal of Public Economics, Elsevier, vol. 73(2), pages 147-185, August.
    5. Homburg, Stefan & Theisen, René Manuel, 2000. "Steuersenkungsgesetz: Das gefangene Eigenkapital," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1930-1931.
    6. Gentry, William M., 1994. "Taxes, financial decisions and organizational form : Evidence from publicly traded partnerships," Journal of Public Economics, Elsevier, vol. 53(2), pages 223-244, February.
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    Cited by:

    1. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    2. Peter Birch Sørensen, 2002. "The German Business Tax Reform of 2000: A General Equilibrium Analysis," German Economic Review, Verein für Socialpolitik, vol. 3(4), pages 347-378, November.
    3. Maiterth, Ralf & Sureth, Caren, 2006. "Unternehmensfinanzierung, Unternehmensrechtsform und Besteuerung," arqus Discussion Papers in Quantitative Tax Research 15, arqus - Arbeitskreis Quantitative Steuerlehre.
    4. Frank Blasch & Alfons J. Weichenrieder, 2006. "When Taxation Changes the Course of the Year – Fiscal Year Adjustments and the German Tax Reform 2000/2001," CESifo Working Paper Series 1861, CESifo Group Munich.

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