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Title: |
Tax Policy and Corporate Financial Structure
in Korea |
| Author: |
Choi, Kwang |
| Author
Affiliation: |
Hankuk U |
| Source: |
International Economic Journal, Winter 1987, v. 1, no. 4, pp. 61-76 |
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Publication Date: |
Winter 1987 |
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Abstract: |
One of the issues of great policy concern
in Korea has been the unusually high degree of financial leverage and
the continuous deterioration of corporate capital structure. The capital
structure existing at any one time and its change over time reflects
corporate responses to the surrounding stimuli. To analyze the excessive
leverage and the change in the corporate capital structure, this paper
develops a theoretical model which takes into account the tax and nontax
factors, both of which include general and Korea-specific aspects. The
empirical test using the data of the last 25 years supports the
hypotheses derived from the theoretical model. |
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