The effect of taxes on the debt policy of Spanish listed companies
- José A. Clemente Almendros 1
- Francisco Sogorb Mira 2
- 1 Departamento de Empresa, EDEM Escuela de Empresarios, Valencia
- 2 Departamento de Economía y Empresa,Universidad CEU Cardenal Herrera, Elche
ISSN: 1869-4195
Datum der Publikation: 2016
Ausgabe: 7
Nummer: 3
Seiten: 359-391
Art: Artikel
Andere Publikationen in: SERIEs : Journal of the Spanish Economic Association
Zusammenfassung
This study explores the role of taxes in explaining companies’ financing decisions. We test whether the corporate tax shields explanation of capital structure is applicable to firms listed on the Spanish stock exchange over the period 2007– 2013. Taxes are found to be economically and statistically significant determinants of capital structure. Our results suggest that marginal tax rates affect the debt policies of Spanish listed companies, and the existence of non-debt tax shields constitutes an alternative to the use of debt as a tax shelter. Consistent with theoretical expectations, there is a stronger relation between debt and taxation in less levered firms. Finally, we empirically estimate the impact of the new thin-capitalization rule put forth by the Spanish government in 2012 on the financing behaviour of Spanish listed companies.