Do Taxes Affect Public Utility Company Debt-Financing Decisions?

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dc.contributor.authorCannack, Susan E.
dc.contributor.authorAtwood, T.J.en_US
dc.dateDecember 2005en_US
dc.date.accessioned2018-11-02T14:38:09Z
dc.date.available2018-11-02T14:38:09Z
dc.date.issued2005-12-1
dc.description.abstractThis study examines whether tax incentives influence debt-financing decisions in the public utility industry. We find no relation between debt financing decisions and tax incentives for the public utility industry as a whole; however, we find a significant positive relation for public utility firms operating in very favorable regulatory environments, as indicated by the Regulatory Research Associates' regulatory environment rankings of Above Average/Strong and Above Average/Mid-Range. Our results suggest that tax incentives influence debt-financing decisions for public utility firms operating in very favorable regulatory environments because these firms are able to pass tax benefits through to shareholders. For firms operating in other regulatory environments, tax benefits arising from debt financing are likely to be passed on to customers rather than to shareholders. As a result, tax benefits are not significant factors in debt financing decisions for these firms. We also find similar results for levels of short-term debt financing.en_US
dc.description.sponsorshipKaw Valley Banken_US
dc.format.mediumPDFen_US
dc.identifier.otherSchool of Business Working Paper Series; No. 61en_US
dc.identifier.urihttps://hdl.handle.net/10425/198
dc.language.isoen_USen_US
dc.publisherWashburn University. School of Businessen_US
dc.subjectTaxationen_US
dc.subjectPublic utilitiesen_US
dc.subjectDebt financingen_US
dc.subjectCorporationsen_US
dc.titleDo Taxes Affect Public Utility Company Debt-Financing Decisions?en_US
dc.typeWorking paperen_US
washburn.identifier.cdm132en_US
washburn.identifier.oclc64698589en_US
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