TY  - JOUR
AU  - Auerbach,Alan J.
TI  - Taxation and Corporate Financial Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8203
PY  - 2001
Y2  - April 2001
UR  - http://www.nber.org/papers/w8203
L1  - http://www.nber.org/papers/w8203.pdf
N1  - Author contact info:
Alan J. Auerbach
Department of Economics
530 Evans Hall, #3880
University of California, Berkeley
Berkeley, CA 94720-3880
Tel: 510/643-0711
Fax: 510/643-0413
E-Mail: auerbach@econ.berkeley.edu
AB  - This paper reviews the theory and evidence regarding the impact of taxation on corporate financial policy.  Starting from a basic characterization of the classical corporate income tax and its effects, the analysis focuses on three areas of research: equity policy, debt-equity decisions, and choices regarding ownership structure and organizational form.  The discussion stresses the distinction between nominal and more fundamental financial differences   for example, in the relationship between borrowing and leasing   and that financial policy involves choices not only among different underlying policies but also among characterizations of a given policy.  The final section offers some brief reflections on the implications of continuing financial innovation.
ER  -