The purpose of this study is to determine the effect business risk, non-debt tax shield and tangibility on capital structure with firm size as a moderating variable, by analyzing testing. objects in are companies listed Jakarta Islamic Index for 2015-2019 periode. sampling technique used purposive which included 19 samples. analysis method research multiple linear regression Moderated Regressio...

We analyze optimal fiscal and monetary policy in an economy with distortionary labor income taxes, nominal rigidities and nominal debt of various maturities. Optimal policy prescribes the exclusive use of long term debt. Such debt mitigates the distortions associated with hedging fiscal shocks by allowing the government to allocate them efficiently across states and periods.

This paper, I have focused on the tax side of the fiscal policy to  investigate the past and future behavior of fiscal sustainability in Iran. To do so, I have employed two different forward-looking and backward-looking approaches. First, the backward-looking approach is the fiscal policy rule proposed by Daving & Leeper (2011). Precisely, this rule determines that whether the fiscal policy is ...

Recent international agreements on tax data sharing aim to facilitate residence based taxation of capital and thus mitigate tax competition. I show that residence based capital tax rates can still decline with the number of financially integrated countries when public spending and debt are used strategically. While suboptimal in the steady state, strategic policies persist during transition if ...

Abstract The aim of this research was to examine how profitability, liquidity, tangibility, and non-debt tax shield impact the capital structure manufacturing companies listed on IDX during period 2017-2021, with institutional ownership as a moderating factor. sample selected using purposive sampling based predetermined criteria, panel data regression analysis used for analysis. hypothesis test...

This paper examines the choice between alternative debt and deficit responses in an overlapping generations (OG) setting. The OG model is a convenient framework for making interest rates sensitive to the supply of public debt and for distinguishing between different types of taxes and transfers. A given deficit-reduction yields a greater reduction of future debt if the policy instrument also re...

This paper considers appropriate debt funding strategies for state and municipal governments in the presence of a positive, tax-exempt term premium. The correlation between a measure of income from rate-sensitive assets and the tax-exempt floating rate is the principal focus of the analysis. A single period framework is used to identify the most important information required to design the opti...

Debt plays an important role in the financing of multinational corporations (MNCs). Interest expenses are typically tax-deductible in most corporate income tax systems, and there has been a growth of interest in recent years in the tax treatment of debt and its consequences. This paper discusses the optimal form that interest deductibility and associated restrictions should take in a multi-juri...

A neoclassical growth model is augmented by a corporate sector, financial intermediation, and a set of tax rates. In this setting, capital structure is determined by the interplay between a tax advantage of debt finance and costly state verification entailed by asymmetric information. Effects of capital tax reforms are investigated with a special focus on this micro-founded credit channel of ta...