Journal of Financial and Quantitative Analysis Vol. 25 No. 1 1990
A Multiperiod Theory of Corporate Financial Policy Under Taxation
Abstract
This paper examines multiperiod corporate financial policy in a world where the only market imperfection is taxation. The optimal financial policy determines the firm's capital structure and debt maturity structure. Two implications of this policy are: (1) there can be a set of debt-asset ratios that is consistent with firm value maximization, and (2) debt maturity structure is irrelevant to firm value.
- DOI
- 10.2307/2330886
- Volume
- 25
- Issue
- 1
- Pages
- 25
- Sources
- openalex crossref