TY - JOUR
T1 - Taxes and corporate borrowing
T2 - Empirical evidence from selected african countries
AU - Abor, Joshua
AU - Bokpin, Godfred A.
AU - Fiawoyife, Eme
PY - 2011/5
Y1 - 2011/5
N2 - 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.
AB - 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.
KW - Africa
KW - Corporate borrowing
KW - Taxes
UR - http://www.scopus.com/inward/record.url?scp=79960933081&partnerID=8YFLogxK
U2 - 10.1080/15228916.2011.588916
DO - 10.1080/15228916.2011.588916
M3 - Article
AN - SCOPUS:79960933081
SN - 1522-8916
VL - 12
SP - 287
EP - 303
JO - Journal of African Business
JF - Journal of African Business
IS - 2
ER -