Articles liés à Corporate Income Tax (CIT) and Capital: Does Capital...

Corporate Income Tax (CIT) and Capital: Does Capital Structure matter ? - Couverture souple

Agossadou, Stanislas T. Médard D. C.

 
9786207475032: Corporate Income Tax (CIT) and Capital: Does Capital Structure matter ?
Couverture souple
ISBN 10 : 6207475038 ISBN 13 : 9786207475032
Editeur : LAP LAMBERT Academic Publishing, 2024

Synopsis

This research consists of verifying whether corporate income tax (CIT) has an effect on capital given the financing risk incurred.The sample starts with a case study of two hypothetical identical firms, one indebted and the other non-indebted, with the same profitable investment project over a period of time, and ends with 101 pairs of identical firms belonging to different classes of financing risk. The hypothesis of non-gratuity of cost and income is used, and capital markets are assumed to be pure and perfect.The results confirm that CIT has no effect on the structure, value, cost and return of capital for a given financing risk, and reveal the existence of a third source of financing called "public capital", whose cost is the corporate capital tax (CCT) rate. There is no longer any question of thinking about the optimum capital structure, which is a pure financial illusion. This paper is one of the first to show that corporate tax (CT) has no effect on capital, and to propose a model that explains capital structure behavior in the presence of CT.

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Éditeur
LAP LAMBERT Academic Publishing
Date d'édition
2024
Langue
anglais
ISBN 10 
6207475038
ISBN 13 
9786207475032
Reliure
Broché
Nombre de pages
84
Coordonnées du fabricant
non disponible
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