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Maßbaum A, Sureth C (2009). Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions. BuR - Business Research, Vol. 2, Iss. 2, pp. 147-169, URN: urn:nbn:de:0009-20-21638
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%0 Journal Article %T Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions %A Maßbaum, Alexandra %A Sureth, Caren %J BuR - Business Research %D 2009 %V 2 %N 2 %@ 1866-8658 %F maßbaum2009 %X Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement. %L 330 %K Miller equilibrium %K business taxation %K capital structure %K critical income tax rate %K financing decision %K tax planning %K thin capitalization %U http://nbn-resolving.de/urn:nbn:de:0009-20-21638 %P 147-169
Bibtex
@Article{maßbaum2009,
author = "Ma{\ss}baum, Alexandra
and Sureth, Caren",
title = "Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions",
journal = "BuR - Business Research",
year = "2009",
volume = "2",
number = "2",
pages = "147--169",
keywords = "Miller equilibrium",
keywords = "business taxation",
keywords = "capital structure",
keywords = "critical income tax rate",
keywords = "financing decision",
keywords = "tax planning",
keywords = "thin capitalization",
abstract = "Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement.",
issn = "1866-8658",
url = "http://nbn-resolving.de/urn:nbn:de:0009-20-21638"
}
RIS
TY - JOUR AU - Maßbaum, Alexandra AU - Sureth, Caren PY - 2009// TI - Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions JO - BuR - Business Research SP - 147 EP - 169 VL - 2 IS - 2 KW - Miller equilibrium KW - business taxation KW - capital structure KW - critical income tax rate KW - financing decision KW - tax planning KW - thin capitalization N2 - Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement. SN - 1866-8658 UR - http://nbn-resolving.de/urn:nbn:de:0009-20-21638 ID - maßbaum2009 ER -
Wordbib
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ISI
PT Journal AU Maßbaum, A Sureth, C TI Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions SO BuR - Business Research PY 2009 BP 147 EP 169 VL 2 IS 2 DE Miller equilibrium; business taxation; capital structure; critical income tax rate; financing decision; tax planning; thin capitalization AB Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement. ER
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Full Metadata
| Bibliographic Citation | BuR - Business Research, Vol. 2, Iss. 2, pp. 147-169 |
|---|---|
| Title | Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions (eng) |
| Author | Alexandra Maßbaum, Caren Sureth |
| Language | eng |
| Abstract | Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement. |
| Subject | Miller equilibrium, business taxation, capital structure, critical income tax rate, financing decision, tax planning, thin capitalization |
| DDC | 330 |
| Rights | authorcontract |
| URN: | urn:nbn:de:0009-20-21638 |
