In the third chapter, I use the sale-and-leaseback transactions as a special case of leasing to test theories relating leasing to debt. After controlling for other exogenous determinants of incremental debt policy, I find that firms that have high levels of nondebt tax shields tend to increase debt levels after executing a sale-and-leaseback transaction, suggesting a complementary affect. However, in robustness checks, I cannot reject the substitution hypothesis.DEBT AND TAXES: A NEW MEASURE FOR NONDEBT TAX SHIELDS 2.1 Introduction A long -held argument exists ... as would be predicted by the rational use of the interest tax deduction offered by the Internal Revenue Service tax code .
|Title||:||Corporate Taxes, Leasing, and Debt|
|Publisher||:||ProQuest - 2008|