TY  - JOUR
AU  - MacKie-Mason, Jeffrey
TI  - Do Taxes Affect Corporate Financing Decisions?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2632
PY  - 1988
Y2  - June 1988
DO  - 10.3386/w2632
UR  - http://www.nber.org/papers/w2632
L1  - http://www.nber.org/papers/w2632.pdf
AB  - A new empirical method and data set are used to study the effects of tax policy on corporate financing choices. Clear evidence emerges that non-debt tax shields "crowd out" interest deductibility, thus decreasing the desirability of debt issues at the margin. Previous studies which failed to find tax effects examined debt-equity ratios rather than individual, well-specified financing choices. This paper also demonstrates the importance of controlling for confounding effects which other papers ignored. Results on other (asymmetric information) effects on financing decisions are also presented.
ER  -