The effect of implementing an imputation tax system on corporate financial management - a cross-validation study based on Canada, Australia, and Taiwan
Notice bibliographique
Résumé
Taxes have an impact on both capital investment and capital-structure decisions (that is, balancing debt and equity) of firms. It has been theorised (Modigliani & Miller 1963) that when there is tax relief on debt, the cost of debt falls, which makes investment more attractive; and when corporate income is taxed less, there is more available in retained earnings which can be invested. Tax will, therefore, have an impact on the capital structure of the firm as well as on its capital expenditure. Some countries follow a classical tax system, while others follow an imputation system. The nature of the prevailing tax system in the economic jurisdiction under which a firm operates can be, intuitively, expected to have an impact on the firm's capital investment and its capital-structure decisions.<br><br>The impacts of taxes on firms' capital structure have been the focus of much theoretical and empirical research in financial economics and public finance. Even so, the empirical evidence on the effects of taxes on capital structure and capital-investment decisions - particularly following a switch from a classical to an imputation tax system - remains inconclusive. In the same vein, existing studies related to taxes and capital structure and capital investment within an imputation tax system contradict one another. The core issues are whether there are in fact any impacts at all from tax systems on capital-structure decisions, and whether a switch to an imputation tax system could induce a shift in capital structure towards equity. What is unclear is whether taxes and a tax-system shift to an imputation system have any discernible impact on a firm's capital investment decisions. <br><br>This study is designed to address these issues by examining: <br><br>(1) The impacts of taxes on capital structure and (or) capital investment in Canada (1982-2015), which is a context with a well-established imputation tax system; and<br><br>(2) The impacts of the shift from a classical tax system to an imputation tax system on capital structure and (or) capital investment in Australia (1982-1998) and Taiwan (1989-2009). <br><br>This is done in order to assess the impact of the switch on capital-structure and capital-investment decisions, particularly as extant financial theory suggests a relationship between an optimal capital structure and capital investment. The employed methodology is that of panel regression using a fixed-effects model to test the effects of taxes, as well as the effects of tax-system changes on a firm's capital structure and their capital-investment decisions.<br><br>The findings reveal that taxes and tax-system changes play a role in firms' capital-structure decisions. Specifically, taxes have significant effects on the reduction of debt levels of firms in countries with a well-established imputation-tax system and in those with a tax-system switch from a classical to an imputation system. For capital investment decisions, it is found that while capital investment shows a significant increase in the Australian and Taiwanese cases following the introduction of an imputation-tax system, a significant decrease in capital investment is noticed for the post-2009 period in Canada, a country with a well-established imputation-tax system.<br><br>This present study is an extension of existing studies that focused only on Australian firms. Here, three countries under imputation-tax systems are examined. This provides a diversity of countries, which enables the researcher to examine not only the effects of taxes on capital structure and (or) capital investment, but also on how the introduction of an imputation-tax system affects a firm's capital structure and its capital-investment decisions. This makes the present work stand out from previous literature in terms of its contribution to the theory of capital structure and its impact on investment. Given the current global economic climate characterised by deflation and economic contraction, this study will be of importance to policymakers who are in need of policy tools other than monetary policy to stimulate economic growth.
Récupéré en direct depuis OpenAlex et désinversé. Les résumés ne sont pas conservés dans cette base de données : les index inversés représentent 8,6 Go des 9,3 Go de texte de la base, et le serveur dispose de 13 Go libres.
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Prédiction distillée sur la base complète
Imitation des enseignantsNi prévalence calibrée, ni vérité terrain. Validation humaine à venir. Apprise à partir de 10 348 étiquettes directes de Codex et de 10 348 étiquettes directes de Gemma. Le mode candidate est l'union des têtes enseignantes seuillées; le consensus est leur intersection. Ces sorties portent le statut machine_predicted_unvalidated et ne sont ni des étiquettes humaines ni des étiquettes directes de modèles de pointe.
Scores Codex et Gemma par catégorie
| Catégorie | Codex | Gemma |
|---|---|---|
| Métarecherche | 0,001 | 0,000 |
| Méta-épidémiologie (sens strict) | 0,000 | 0,000 |
| Méta-épidémiologie (sens large) | 0,000 | 0,000 |
| Bibliométrie | 0,001 | 0,001 |
| Études des sciences et des technologies | 0,002 | 0,000 |
| Communication savante | 0,001 | 0,001 |
| Science ouverte | 0,001 | 0,000 |
| Intégrité de la recherche | 0,000 | 0,000 |
| Charge utile insuffisante (le modèle a refusé de juger) | 0,000 | 0,000 |
Scores machine (provisoires)
Les deux têtes enseignantes du modèle étudiant, lues sur ce travail. Un score ordonne la base pour la relecture; il n'affirme jamais une catégorie, et le statut de validation accompagne chaque rangée tel quel.
Scores de référence d'un modèle non mature (critères de maturité non atteints, 7 itérations). Un score ordonne; il n'affirme jamais une catégorie.
score_only:v0-immature-baseline · tel quel depuis la passe de notation : score_only signifie que le nombre peut ordonner les travaux, et qu'aucune étiquette de catégorie n'en découleClassification
machine, non validéePrédiction automatique; un appel candidat d’une seule tête enseignante, pas un consensus.
Le détail, modèle par modèle et score par score, se trouve en fin de page sous « Comment cette classification a été obtenue ».