Do Taxes Affect Corporate Debt Policy? Evidence from US Corporate Tax Return Data

By Roger H. Gordon, Young Lee. 2001

189 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/da47d63c21d26cee5ec00268c3d5a55a2a16b984

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Citations in the corpus

Capital Structure and International Debt Shifting (2007, unknown): “Among these, MacKie-Mason (1990) and Gordon and Lee (2001) identify a tax effect by exploiting the different effective taxation faced by previously loss-making firms and firms of different sizes, respectively.”
Firms' Financial Choices and Thin Capitalization Rules under Corporate Tax Competition (2012, background): “14 Empirical evidence for the positive relationship between the statutory tax rate and the share of external debt is given in Gordon and Lee (2001).”
Corporate tax elasticities: a reader's guide to empirical findings (2008, background): “For instance, Gordon and Lee (2001) exploit the variation in statutory tax rates between small and large companies in the US and find that a 1%-point increase in the corporate tax rate raises the debt/asset ratio at the margin by 0.36%-point, i.e. εDE = − 0.36.”
INTERNAL DEBT AND MULTINATIONAL PROFIT SHIFTING: EMPIRICAL EVIDENCE FROM FIRM-LEVEL PANEL DATA (2013, background): “This positive relationship is confirmed empirically not only for multinationals, as noted in the introduction, but also for domestic firms (e.g., Gordon and Lee, 2001).”
Intercompany Loans and Profit Shifting - Evidence from Company-Level Data (2007, unknown): “Gordon and Lee (2001) flnd a strong tax sensitivity of the leverage of US corporations.”
The Impact of Thin-Capitalization Rules on Multinationals' Financing and Investment Decisions (2006, unknown): “If the impact of the tax rate is non-linear, perhaps due to the convexity (7)Gordon and Lee (2001) report a leverage effect of taxes using US firm-level data of about 0.36. Mintz and Weichenrieder (2005) report results for foreign affiliates of German corporations of between 0.3 and 0.57 depending o”
Capital Structure Choice and Company Taxation: A Meta-Study (2013, unknown): “While, for example, Gordon and Lee (2001) have estimated tax coefficients based on data for a period from 1954 to 1995, other studies, e.g. Graham et al. (2004), provide evidence based on year 2000 data.”
Taxation and the Financial Structure of German Outbound FDI (2005, background): “Gordon and Lee (1999) exploited the fact that in the 1 In his presidential address to the American Finance Association Myers said, “I know of no study clearly demonstrating that a firm‘s tax status has predictable, material effects on its debt policy.”
Capital Structure, Corporate Taxation and Firm Age (2012, unknown): “Such a speciﬁcation has been suggested by Rajan and Zingales (1995) and Gordon and Lee (2001).”