tailieunhanh - Effects of ultimate ownership structure and corporate tax on capital structures: Evidence from taiwan

Our study investigates how ultimate ownership structure and the corporate tax rate affect the equilibrium trade-off relation between manager ownership and debt in reducing agency costs. Considering the presence of the controlling shareholder, we find that higher corporate tax rates strengthen the trade-off relation between manager ownership and debt while higher control rights held by the controlling shareholder weaken it as well as the strengthening effect of corporate tax rate. Our study contributes to the literature by revealing tax and ultimate ownership structure dimensions and their interactions as additional determinants of corporate capital structure. | ARTICLE IN PRESS REVECO-00853 No of Pages 17 International Review of Economics and Finance xxx 2013 xxx-xxx Contents lists available at SciVerse ScienceDirect International Review of Economics and Finance journal homepage locate iref Effects of ultimate ownership structure and corporate tax on capital structures Evidence from Taiwan Cheng-Few LeeaJ Nan-Ting Kuob a Rutgers Business School Rutgers University Piscataway NJ 08854-8054 USA b National Central University Taiwan ARTICLE INFO ABSTRACT Article history Received 25 March 2012 Received in revised form 2 July 2013 Accepted 12 July 2013 Available online xxxx JEL classification G30 G32 G38 Our study investigates how ultimate ownership structure and the corporate tax rate affect the equilibrium trade-off relation between manager ownership and debt in reducing agency costs. Considering the presence of the controlling shareholder we find that higher corporate tax rates strengthen the trade-off relation between manager ownership and debt while higher control rights held by the controlling shareholder weaken it as well as the strengthening effect of corporate tax rate. Our study contributes to the literature by revealing tax and ultimate ownership structure dimensions and their interactions as additional determinants of corporate capital structure. 2013 Elsevier Inc. All rights reserved. Keywords Capital structure Manager ownership Controlling shareholder Agency cost 1. Introduction Manager ownership and debt both reduce agency costs and they exist in equilibrium in a firm. This study investigates how ultimate ownership structure and corporate tax status affect this equilibrium. The effect of a firm s ownership structure on performance has received considerable attention in the literature. However few studies have examined the effects of ownership structure or corporate tax status on capital structure and they focus on the interaction between manager ownership and debt financing . Crutchley Hansen .

• Tài chính doanh nghiệp
• Capital structure
• Manager ownership
• Controlling shareholder
• Agency cost
• Ultimate ownership structure
• Evidence from taiwan
• Vietnamese construction firms
• Capital structure choice
• Return on assets
• Return on equity
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Capital structure decisions
• Firm performance
• Foreign ownership
• Capital ownership form
• Relation to capital structure
• The capital structure
• Initial public offerings
• Ordinary least square
• Market timing on capital structure
• Vietnam construction industry
• Market timing on capital structureevidence
• Capital Structure Policy
• The Effect of Financial Leverage
• Corporate Taxes
• Bankruptcy Costs
• The Capital Structure Question
• Finance management
• Fundamentals of finance management
• Optimal capital structure
• Operating leverage
• Capital structure theory
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Capital structure effects
• Financial risk
• Quantile regression
• Determinants of capital structure
• Listed firms in Vietnam
• Vietnamese non financial listed firms
• Provincial institutions and capital structure
• New evidence from a transitional economy
• Capital structure and SMEs
• Vietnam’s legal environment
• Firm provincial level panel dataset
• Summary of Doctoral thesis
• Capital structure of tourism service enterprises
• Tourism service enterprises
• The economic market
• Firm characteristics
• SMEs’ capital structure in Egypt
• Non quoted SMEs
• Managerial ownership
• Capital structure in corporate performance utilizing firm size
• Corporate performance utilizing firm size as moderation
• Manufacturing companies listed on the IDX
• Moderate capital structure
• Innovation on corporate performance
• Indian corporate sector
• Multi objective goal setting
• Globalised era of fierce competitions
• Capital structure controversy debate
• Summary of PhD thesis
• Thesis Summary of Doctor of Finance Banking
• Finance Banking
• Impact of capital structure
• Profitability of enterprises
• Listed enterprises
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Market timing
• The initial public offering
• Using ordinary least square
• Equity market timing on capital structure
• Listed companies
• Trade off hypothesis
• Debt ratio
• Leverage financing
• Listed construction companies in Malaysia
• Selected private Bank
• Leverage and Profitability
• Dividend Payout Ratio
• Appropriate capital structure
• Fixed Effect Panel Regression Mode
• Vietnam stock market
• Aquaculture model
• Enterprise capital structure
• Debt maturity structure
• Real estate construction investment
• Trading enterprises in Vietnam
• Sources of finance
• Trade off theory
• Pecking order theory
• Capital adequacy
• Global financial crisis