The Influence of Tax Convexity on Optimal Capital Structure

Student: Mindlin Vitalij

Educational Programme: Bachelor

Year of Graduation: 2014

<p>Effective tax rate for firm with profits is different from the one for firm with losses due to existing tax rebates. Therefore tax function must be asymmetric and convex, however many researchers assume that it is linear. This paper investigates the relationship between optimal capital structure and tax convexity. Analysis of data of 37 companies revealed that there is a negative relationship between the researching arguments. This result is consistent with the results of trade-off theory and theoretical Sarkar model, that was a basic model for this research.</p>

Student Theses at HSE must be completed in accordance with the University Rules and regulations specified by each educational programme.

Summaries of all theses must be published and made freely available on the HSE website.

The full text of a thesis can be published in open access on the HSE website only if the authoring student (copyright holder) agrees, or, if the thesis was written by a team of students, if all the co-authors (copyright holders) agree. After a thesis is published on the HSE website, it obtains the status of an online publication.

Student theses are objects of copyright and their use is subject to limitations in accordance with the Russian Federation’s law on intellectual property.

In the event that a thesis is quoted or otherwise used, reference to the author’s name and the source of quotation is required.

Search all student theses