The pecking order theory of capital structure is one of the most influential theories of corporate finance. The purpose of this study is to explore the most important factors on a firm’s capital structure by pecking-order theory. Hierarchical regression is used as the analysis model. This study examines the determinants of debt decisions for 305 Taiwan electronic companies that are quoted on th...

Moody's ratings for tax-backed municipal bonds are derived from five primary credit factors: legal security, local economy , financial operations, debt profile and management. This special comment will focus on the debt component of Moody's analysis and ratings. Debt as a credit factor can not be isolated from the other credit factors, nor viewed as a stand-alone ratio or set of ratios. Rather,...

On April 26, 1996, Public Law 104-134 was Chart 1 .-Payment volume, by type of disbursement, fiscal year 1997 enacted, requiring all Federal payments except tax refunds be issued electronically by January 2, 1999, thus beginning a new era in electronic N Federal tax 10.5% funds transfer (EFT). This legislation, the Debt Collection Improvement Act of 1996-part of the Omnibus Consolidated Resciss...

By means of a dynamic panel data analysis, and using a database from municipalities of the province of Barcelona (1993-99), we describe their process of fiscal adjustment to a shock in tax capacity. About 25% of the shock is internalized through an increase in tax effort, 35% through a reduction in public expenditure (mainly investment), while the rest (40%) is covered by an increase in the lev...

In one case Charles River Associates has dealt with, the tax authority asserted that a subsidiary is of such strategic importance to the group’s ultimate parent company that the subsidiary’s “stand-alone” credit rating should be adjusted upwards to the parent’s rating due to implicit support. This is despite the fact that an explicit guarantee had not been provided by the parent and despite the...

This paper studies the incidence of tax-transfer policy in a growth model wherein individuals differ according to their level of intergenerational altruism and have an endogenous labor supply. The main results is that public debt is neutral at the macro level but redistributes resources from nonaltruists to altruists. Capital income taxation can hurt the nonaltruists who do not have any wealth ...

For economies in which the real rate of return on money is too low, the standard prescription is to deflate prices according to the Friedman rule. Implicit in this recommendation is the availability of a lump-sum tax instrument. In this paper, I view lump-sum tax obligations as a form of debt subject to default. While individuals may agree to honor such obligations ex ante, a lack of commitment...

Toder for helpful comments. The findings and conclusions contained within are solely the responsibility of the authors and do not necessarily reflect positions or policies of the Tax Policy Center or its funders. ii ABSTRACT We examine how tax policies alter investment incentives, with a particular focus on startup and innovative businesses. Consistent with prior work, we find that existing pol...

A puzzle is why a large proportion of firms eligible for income tax refunds do not file claims for such refunds on a timely basis. I hypothesize that firms with private information about higher future profitability and seeking debt financing forgo immediate use of provisions that allow the carryback of net operating losses as a signaling device to separate from firms with lower future profitabi...