This article reviews empirical capital structure research, concentrating on papers published
since 2005. We begin by documenting three dimensions of capital structure variation: cross …

This chapter reviews the theory and evidence regarding the impact of taxation on corporate
financial policy. Starting from a basic characterization of the classical corporate income tax …

This paper analyzes the explanatory power of some of the recent theories of optimal capital
structure. The study extends empirical work on capital structure theory in three ways. First, it …

Confirming predictions shared by the trade-off and pecking order models, more profitable
firms and firms with fewer investments have higher dividend payouts. Confirming the …

Research on capital structure attempts to explain how corporations finance real investment,
with particular emphasis on the proportions of debt vs. equity financing. There is no …

This paper tests traditional capital structure models against the alternative of a pecking order
model of corporate financing. The basic pecking order model, which predicts external debt …

This paper presents evidence suggesting that information and incentive problems in the
capital market affect investment. We come to this conclusion by examining two sets of …

When firms adjust their capital structures, they tend to move toward a target debt ratio that is
consistent with theories based on tradeoffs between the costs and benefits of debt. In …

We use cross‐sectional regressions to study how a firm's value is related to dividends and
debt. With a good control for profitability, the regressions can measure how the taxation of …

This paper provides clear evidence of substantial tax effects on the choice between issuing
debt or equity; most studies fail to find significant effects. The relationship between tax …