Effect of Combining Corporate and Personal Income Taxes on Capital Structure Decisions: Evidence from Taiwan Market
نویسندگان
چکیده
Taiwan, Republic of China (ROC), introduced a new income tax system, combining corporate and personal income taxes, on 1 January 1976. This new tax system, resembling those used in many European countries, has had a significant impact on the debt/equity capital structure of companies domiciled in Taiwan. This study provides historical background concerning taxing policies, an analysis of the new income tax system (combining the Two Tax Systems into One, or 2 -1-CTS) in Taiwan and examines its impact on the capital structure decisions in Taiwan.
منابع مشابه
The Impact of Corporate income Tax and Firm Size on Fixed Investment
This paper is an attempt to analyze the impact of income taxes and market capitalization on fixed investment (investment in tangible assets) by manufacturing companies listed on KSE. This paper basically examines that how corporate income taxes affect fixed investment by reducing cash flow available for a firm to invest and how the firm size in the lights of market capitalization affects fixed ...
متن کاملSome Determinants of Corporate Financing Decisions: Evidence from the Listed Companies in Tehran Stock Exchange
The aim of this empirical study is to explore the trade-off model and pecking order model of capital structure. The investigation is performed using panel data procedures for a sample of 76 firms listed in Tehran Stock Exchange during 2007-2010.The study employs OLS regression model in examining the capital structure of firms in Iran. The study employs variables reflecting differing theoretical...
متن کاملDo Tax Structures Affect Aggregate Economic Growth? Empirical Evidence from a Panel of Oecd Countries
/RESUMÉ Do tax structures affect aggregate economic growth? Empirical evidence from a panel of OECD countries This paper examines the relationship between tax structures and economic growth by entering indicators of the tax structure into a set of panel growth regressions for 21 OECD countries, in which both the accumulation of physical and human capital are accounted for. The results of the an...
متن کاملThe Character and Determinants of Corporate Capital Gains
This paper analyzes how corporate capital gains taxes affect the capital gain realization decisions of firms. The paper outlines the tax treatment of corporate capital gains, the consequent incentives for firms with gains and losses, the efficiency consequences of these taxes in the context of other taxes and capital market distortions, and the response of firms to these incentives. Despite rec...
متن کاملA Perspective on Promoter Ownership and Market Reaction to Corporate News: Evidence from India
C orporate governance structures in the wake of observed differences in firm ownership structures in developed markets and emerging market economies are distinct. In this paper, we examine the effect of an ownership structure of firms on the market reaction to corporate news flows in the context of emerging market economies like India. We observe the price and volume movements associ...
متن کامل