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How do taxes affect firms' debt-equity choices in capital structure? Using a large set of tax reforms across countries, we show that taxes matter for capital structure and the results support the traditional tradeoff theory of capital structure.
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This page is a summary of: Taxes and Capital Structure, Journal of Financial and Quantitative Analysis, June 2015, Cambridge University Press,
DOI: 10.1017/s0022109015000174.
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