Corporate taxation and its reform : the effects on corporate financing decisions in Italy

@inproceedings{Bontempi2004CorporateTA,
  title={Corporate taxation and its reform : the effects on corporate financing decisions in Italy},
  author={Maria Elena Bontempi and Silvia Giannini and Roberto Golinelli},
  year={2004}
}
The aim of this paper is twofold. First, we measure the relationship between fiscal variables and companies debt choices in Italy using a dynamic representation of the modified pecking order model, where both trade-off and pecking order theories are nested. Second, our estimation results are used, jointly with some tax simulations undertaken with a company microsimulation tax-model (MATÍS), to assess the effects on leverage of two recent tax reforms in Italy since 1996. Main results suggest… CONTINUE READING