TITLE:
Research on the Impact of Tax Shield Effect on Corporate Capital Structure—Empirical Analysis Based on A-Share Listed Companies
AUTHORS:
Lei Lei
KEYWORDS:
Capital Structure, Tax Shield Effect, Corporate Income Tax
JOURNAL NAME:
Modern Economy,
Vol.11 No.1,
January
17,
2020
ABSTRACT: This paper uses a random-effects model and takes 224 listed companies in
China from 2002 to 2017 as a sample to empirically study the relationship
between the corporate income tax shield effect and corporate capital structure
in China. It is found that the debt tax shield and corporate capital structure
are significantly positive. Relatedly, the non-debt tax shield is significantly
negatively related to the corporate capital structure. At the same time, the
impact of debt tax shields and non-debt tax shields on corporate capital
structure varies from industry to industry.