Taxes and corporate borrowing: Empirical evidence from selected african countries

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

In this study the authors examine the effect of taxes on corporate borrowing in selected African countries. With use of a panel regression model, their results suggest that taxation is not important in explaining corporate borrowing decisions. However, they found significant relationships between the other firm-level characteristics and debt-equity ratio. Firm age, for instance, shows a negative effect on debt-equity ratio in Ghana and Kenya but registers a positive effect on debt-equity ratio in South Africa. Firm size signals a positive effect on debt-equity ratio in Kenya and South Africa. Also, debt-equity ratio is negatively affected by profitability in Kenya and growth potential in Nigeria.

Original languageEnglish
Pages (from-to)287-303
Number of pages17
JournalJournal of African Business
Volume12
Issue number2
DOIs
Publication statusPublished - May 2011
Externally publishedYes

Keywords

  • Africa
  • Corporate borrowing
  • Taxes

Fingerprint

Dive into the research topics of 'Taxes and corporate borrowing: Empirical evidence from selected african countries'. Together they form a unique fingerprint.

Cite this