Determinants of corporate borrowing
Journal of Financial EconomicsPublished 1 March 1982
Keshav Gupta
Citations54
SJR quartileQ1
SJR score17.67
SNIP6.18
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Abstract
In his article Determinants of Corporate Borrowing, Myers (1977) says that it is not guaranteed that the maximum value of the firm is reached before the maximum value of the debt is utilized in the case in which the interest payment is fully tax deductible, but the tax shield is lost if the firm goes bankrupt. I have shown here that even in such a case the maximum value of the firm will always be achieved before the maximum available debt is utilized.
Keywords
Business, Management and Accounting
Journal of Financial EconomicsDeterminants of corporate borrowing
13,388 Citations1977Stewart C. Myers