Optimal capital structure and credit policy with bank-tax-guarantee
We study the optimal capital structure, credit policy and investment strategy of a small- and micro-sized enterprise that funds the expansion investment by bank-tax-guarantee, an innovative financing pattern that utilizes the superimposed effects of bank tax cooperation and bank guarantee cooperation. We show that investment is accelerated by stricter tax supervision, and is first delayed and then accelerated as the degree of tax payment increases. The optimal leverage ratio decreases with the cost of tax evasion and the degree of tax payment. The loose credit policy reduces corporate debt scale, guarantee cost and optimal leverage ratio.
National Natural Science Foundation of China;Fundamental Research Funds for the Central Universities[JBK2304016];
Cited Times [WOS]:0
|Document Type||Journal Article|
|Department||Department of Finance|
1.School of Finance,Southwestern University of Finance and Economics,Chengdu,China
2.Institute for Advanced Studies in Finance and Economics,Hubei University of Economics,Wuhan,China
3.Department of Finance,Southern University of Science and Technology,Shenzhen,China
|Corresponding Author Affilication||Department of Finance|
Chen，Biao,Jiang，Jinglu,Zhu，Nanhui. Optimal capital structure and credit policy with bank-tax-guarantee[J]. Finance Research Letters,2023,58.
Chen，Biao,Jiang，Jinglu,&Zhu，Nanhui.(2023).Optimal capital structure and credit policy with bank-tax-guarantee.Finance Research Letters,58.
Chen，Biao,et al."Optimal capital structure and credit policy with bank-tax-guarantee".Finance Research Letters 58(2023).
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