| Popis: |
The objective of this paper is to investigate the relationship between corporate income tax and firmfinancing decision. Based on the raw data from the WBES and OECD statistics, I gather firm-levelinformation and use three types of corporate income tax rate. The ordinary least square regressionresults evidence that under the expectation of high corporate tax rate, firms appear to seek outexternal financing rather than internal financing. Furthermore, firms with relatively low labor costtend to pick up external financing. |
