Add to ORKGIn this study, we use cross-sectional regressions to estimate the value of the debt-tax shield. Recognizing that debt is correlated with the value of operations along nontax dimensions, we estimate reverse regressions in which we regress future profitability on firm value and debt rather than regressing firm value on debt and profitability. Reversing the regressions mitigates bias and facilitates the use of market information to control for differences in risk and expected growth. Our estimated value for the debt-tax shield is approximately 40 percent (ten percent) of debt balances (firm value), net of the personal tax disadvantage of debt. In addition, our estimates for the debt-tax shield vary across tax regimes and across firms in a pred...
This study tests the joint prediction of the substitution effect and the tax exhaustion hypothesis t...
In this paper, I use difference-in-differences regressions to measure how the debt tax shield affect...
This paper describes a simple way to integrate the debt tax shield into an accounting-based valuatio...
The tax shield from debt represents a significant proportion of total value for many companies, proj...
The influence of taxes on financial decisions has been a focus of an enormous body of corporate fina...
The recent interest in the valuation of the benefits from debt financing arises from the disagreemen...
We use a dynamic model of the \u85rm to ascertain both the value and the determinants of the tax ben...
Debt financing of investment projects, used to complete internal sources, has benefits that increase...
We re-examine the claim that many corporations are underleveraged in that they fail to take full adv...
We re-examine the claim that many corporations are underleveraged in that they fail to take full adv...
This dissertation examines the relationship between debt and investment-related tax shields using ch...
This paper studies the valuation of assets with debt tax shields when debt policy is a general time-...
This paper develops models for discount rates that are adjusted for the interest tax shields of an i...
This paper describes a simple way to integrate the debt tax shield into an accounting-based valuatio...
In spite of the fact that there is empirical evidence that debt tax benefits add to firm value, addi...
This study tests the joint prediction of the substitution effect and the tax exhaustion hypothesis t...
In this paper, I use difference-in-differences regressions to measure how the debt tax shield affect...
This paper describes a simple way to integrate the debt tax shield into an accounting-based valuatio...
The tax shield from debt represents a significant proportion of total value for many companies, proj...
The influence of taxes on financial decisions has been a focus of an enormous body of corporate fina...
The recent interest in the valuation of the benefits from debt financing arises from the disagreemen...
We use a dynamic model of the \u85rm to ascertain both the value and the determinants of the tax ben...
Debt financing of investment projects, used to complete internal sources, has benefits that increase...
We re-examine the claim that many corporations are underleveraged in that they fail to take full adv...
We re-examine the claim that many corporations are underleveraged in that they fail to take full adv...
This dissertation examines the relationship between debt and investment-related tax shields using ch...
This paper studies the valuation of assets with debt tax shields when debt policy is a general time-...
This paper develops models for discount rates that are adjusted for the interest tax shields of an i...
This paper describes a simple way to integrate the debt tax shield into an accounting-based valuatio...
In spite of the fact that there is empirical evidence that debt tax benefits add to firm value, addi...
This study tests the joint prediction of the substitution effect and the tax exhaustion hypothesis t...
In this paper, I use difference-in-differences regressions to measure how the debt tax shield affect...
This paper describes a simple way to integrate the debt tax shield into an accounting-based valuatio...