Debt structure composition is an essential topic of discussion for the management capital decisions. Researchers made extensive efforts to understand criteria selecting debts, specifically, know about reasons debt specialization, concealed in identifying its predictors. This question not only establishing field but also financial managers design corporate strategy a way that leads attaining opt...

one of the reasons that companies avoid paying their taxes is that they choose to use debts for their funding. in other words, tax saving, an activity of companies to avoid taxpaying, can be used to finance corporate projects. furthermore, since institutional owners are more inclined to supervise, they may shrink managerial behaviors to avoid taxpaying. in this study, institutional owners’ supe...

This paper starts with primitive assumptions on consumer preferences and then derives prices consistent with a social optimum within an insurance company and the capital allocation implied therein. The implied allocation “adds up” to the total capital of the …rm (a result echoing …ndings in the congestion pricing literature— where optimal tolls exactly cover the rental cost of the highway). The...

In this study, using various panel models and estimators, we find empirically that the trade-off and pecking order theories are not mutually exclusive in explaining quoted Portuguese companies capital structure decisions. However, the finance behaviour of quoted Portuguese companies comes close to that forecast by the pecking order theory: (i) the magnitude of the effects of financial deficit o...

In an economy with identical infinitely-lived households that obtain utility from leisure as well as consumption, Chamley (1986) and Judd (1985) have shown that the optimal tax system to pay for an exogenous stream of government purchases involves a zero tax rate on capital in the long run, with tax revenue collected by a distortionary tax on labor income. Extending the results of Hall and Jorg...