Taxation and Capital Structure: Evidence from Russian Companies
Elena Makeeva
Department of Finance, National Research University Higher School of Economic, Russia
Tatiana Kozenkova
Department of Financial Management, Financial University under the Government of the Russian Federation
Keywords: Taxation, Capital structure, Russian companies, Bankruptcy probability, Effective tax rate, Debt.
Abstract
This paper presents a study of the impact of taxation on the capital structure of Russian companies, based on the Graham model. The study revealed that it is more appropriate to include the effective tax rate in the model, rather than use the marginal tax rate since it is more applicable for the Russian companies.