Determining the impact of taxation on corporate financial decision-making

Princen, Savina

doi:10.3917/rpve.513.0161

Cited by 7 publications

(5 citation statements)

References 5 publications

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“…First, an ACE neutralizes the debt-bias. Evidence suggests significant reductions in debt ratios as result of ACE, consistent with theoretical predictions (Princen, 2012;Hebous and Ruf, 2017;Panier et al, 2013). Second, an ACE renders the corporate income tax neutral with respect to marginal investment decisions.…”

Section: Acesupporting

confidence: 69%

Changes in the Cost of Bank Equity and the Supply of Bank Credit

Ongena

Célérier²,

Kick

et al. 2018

Oxford Scholarship Online

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Does the relative cost of equity determine the composition of bank balance sheets and credit supply? To answer this question, we exploit the staggered introduction of tax reforms in Europe from 2000 to 2012 as exogenous sources of changes in the cost of equity. We investigate the effect on credit supply using loan-level data in a country where firms are not affected by these reforms, and where foreign banks affected by the reforms are lending actively: Germany. We find that the relative decrease in the cost of equity leads banks to rely more on equity financing and to increase lending to firms while decreasing security and interbank asset holdings. Overall, we show that taxation can be an effective tool to contain bank leverage while maintaining credit supply. Terms of use: Documents in JEL Codes: E51, E58, G21, G28Key words: Credit, Bank Capital, Regulation * We thank Olivier de Bandt, Lamont Black, Robert DeYoung, Tim Eisert, German Lopez Espinosa, Sergio

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Section: Acesupporting

confidence: 69%

Changes in the Cost of Bank Equity and the Supply of Bank Credit

Ongena

Célérier²,

Kick

et al. 2018

Oxford Scholarship Online

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“…Tax system must be a strong incentive for capital accumulation and influence of the mechanisms of resource allocation on different markets [5,6]. Hence there appears the need to develop a tax strategy that ensures the long-term needs and opportunities of the national economy.…”

Section: Introductionmentioning

confidence: 99%

Assessment of the Tax Burden Impact on the Entity's Financial Results: Micro and Macroeconomic Aspects

Zaharco

2023

J. Soc. Sci.

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Taxes are costs for entities that significantly affect the financial results of the economic-financial activity. The level of fiscal burden imposed on taxpayers depends both on the external fiscal environment in which the entity operates and on the characteristics of its financial and economic activities, including its cost structure, sales revenue, income and other indicators. Therefore, to ensure efficient activity, it is necessary to carry out a comprehensive analysis of the impact of fiscal burden on the entity's financial results. The purpose of this research is to assess the level of fiscal burden and determine the degree of influence on some indicators that characterize the economic-financial activity of the entity. The study is based on the methods of assessing the fiscal burden applied in international practice at both the micro and macroeconomic levels. The study reveals that in order to determine the fiscal burden, especially at the microeconomic level, there is a need to combine several indicators, in accordance with the conceptual approach to the analysis of the tax system. Therefore, increasing the entity's financial results does not only involve reducing taxes, but creating an efficient system for managing and optimizing the entire taxable system.

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“…By giving weights to seven carefully chosen indicators-current ratio, equity ratio, fixed assets ratio, inventory turnover, accounts receivable turnover, fixed assets turnover, and own funds turnover-the literature [6] proposed the Wall score method, which uses the determined score to assess the firm's financial standing. In the writings [7], The two types of financial analysis methods are horizontal analysis, which includes financial ratio analysis, and time series analysis, which is focused on the time dimension. The literature [8] argues that the choice of analysis methods is supposed to be adjusted based on the different objectives of the analysis, which will differ due to the different analysis points of concern at different stages of the company's development.…”

Section: Introductionmentioning

confidence: 99%

Intelligent algorithm-based analysis of corporate financial decisions in the era of cloud accounting

Zhong,

Fan

2023

Applied Mathematics and Nonlinear Sciences

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The development of cloud computing technology has promoted a new information technology revolution, and the arrival of the cloud accounting era has brought new ideas to enterprise financial decision-making. This paper first introduces the improved swarm intelligence algorithm grasshopper optimization algorithm optimization, using reverse learning the Levy flight mechanism to improve the global search ability of the original grasshopper algorithm, using the Gaussian variation mechanism to increase the diversity of the population to achieve algorithm optimization. The IGOA algorithm is then used to optimize the internal parameters of KELM by dynamically adjusting the optimal parameters based on the training set data through a 5-fold cross-validation analysis to evaluate the external classification performance. Then the factors affecting the financial decision analysis and the financial decision process in the cloud accounting era are introduced, and finally, some problems in traditional enterprise decision methods and the impact of intelligent algorithms on enterprise financial decisions are analyzed. In terms of the existing problems, the main ones are: 83% of them think that the traditional enterprise decision-making methods need to be innovated, and 83% of them think there is a shortage of professionals with professional financial decision-making expertise. On the impact of intelligent algorithms on enterprise financial decision-making, 88% think that the decision analysis dimension has been broadened based on intelligent algorithms, and 85% think that the decision risk has achieved fine control. The development and application of intelligent algorithms and cloud accounting technology have an important and positive effect on the financial decision-making mode of enterprises.

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Determining the impact of taxation on corporate financial decision-making

Cited by 7 publications

References 5 publications

Changes in the Cost of Bank Equity and the Supply of Bank Credit

Changes in the Cost of Bank Equity and the Supply of Bank Credit

Assessment of the Tax Burden Impact on the Entity's Financial Results: Micro and Macroeconomic Aspects

Intelligent algorithm-based analysis of corporate financial decisions in the era of cloud accounting

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