Pouring Oil on Fire : Interest Deductibility and Corporate Debt /

This paper investigates the role of tax incentives towards debt finance in the buildup of leverage in the nonfinancial corporate (NFC) sector, using a large firm-level dataset. We find that so-called debt bias is a significant driver of leverage, for both small and medium-sized enterprises and large...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Dallari, Pietro
Kolejni autorzy: End, Nicolas, Miryugin, Fedor, Tieman, Alexander
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2018.
Seria:IMF Working Papers; Working Paper ; No. 2018/257
Dostęp online:Full text available on IMF
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100 1 |a Dallari, Pietro. 
245 1 0 |a Pouring Oil on Fire :   |b Interest Deductibility and Corporate Debt /  |c Pietro Dallari, Nicolas End, Fedor Miryugin, Alexander Tieman. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2018. 
300 |a 1 online resource (42 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper investigates the role of tax incentives towards debt finance in the buildup of leverage in the nonfinancial corporate (NFC) sector, using a large firm-level dataset. We find that so-called debt bias is a significant driver of leverage, for both small and medium-sized enterprises and larger firms, with its effect accounting for about a quarter of leverage. The strength of this effect differs with firm size, the availability of collateral, income and income volatility, cash flow, and capital intensity. We conclude that leveling the playing field between debt and equity finance through tax policy reform would decrease NFC leverage, reducing economic risks posited by leverage. 
538 |a Mode of access: Internet 
700 1 |a End, Nicolas. 
700 1 |a Miryugin, Fedor. 
700 1 |a Tieman, Alexander. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2018/257 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2018/257/001.2018.issue-257-en.xml  |z IMF e-Library