Wirtschaftswissenschaft

Keiichi Kubota, Hitoshi Takehara

Effects of Tax Rate Changes on the Cost of Capital: The Case of Japanese Firms

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FinanzArchiv (FA)

Jahrgang 63 () / Heft 2, S. 163-185 (23)

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The paper studies the effects that tax rate changes have on the cost of capital when firms follow target leverage ratios. We show that changes in individual income tax rates are neutral. The focus therefore is on the effects of changes in marginal corporate tax rates. These effects are computed for Japanese firms. Special emphasis is given to changes in statutory tax rates and provisions that allow firms to carry their losses forward.
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Keiichi Kubota Keine aktuellen Daten verfügbar.

Hitoshi Takehara Keine aktuellen Daten verfügbar.