Corporate tax, capital structure, and the accessibility of bank loans: Evidence from China

• Main Authors: WU, Liansheng, YUE, Heng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Capital structure; Tax; Bank loans; China; Asian Studies; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1670; https://ink.library.smu.edu.sg/context/soa_research/article/2697/viewcontent/corporate_tax.pdf
• Institution: Singapore Management University

In this paper, we investigate whether listed firms in China adjust their capital structure in response to an increase in the corporate taxrate. Although theories of capital structure suggest that corporate tax is an important determinant of capital structure, how exogenouschanges of the tax rate aff...