Abstract
The study aims to analyze the factors that determine the financial structure of listed companies based on the impact of taxation on the value of companies (effective tax rate, tax savings, growth opportunities, asset tangibility, company size, Return on Assets (ROA), company seniority), and the impact of indebtedness on the profitability of enterprises measured by indebtedness rate, turnover, tangibility of assets and seniority of companies. The information collected from the annual financial statements for the period 2010 to 2019 related to the sample of companies was the basis for the analysis of the data panel using the method of multiple regressions. The results show that companies prefer equity as a means of financing and not debt because companies are sensitive to fiscal policies that are sometimes unpredictable and frequently changed. The influence that the fiscal variable has on the financial structure of the companies and its value is a constant result on the entire study. The result of the research also shows that there is an inverse proportion between the degree of indebtedness and the economic profitability of companies; very profitable companies have the ability to secure financing for most of the profits retained for this purpose. Key words: Investments, models, factors, influences, value.
Highlights
In an attempt to explain how firms finance their assets and the factors that influence these financing decisions, a number of theoretical and practical models of capital structure have been proposed over time, with the fiscal variable being introduced in models by Graham (2003).In this context, the research starts from the question: “Is there a direct link between the level of taxes and economic growth?” This question lies in the fact that more important than the payment of taxes is how to use the taxes collected to stimulate economic growth
The econometric model established according to relation (1) has the form of multiple linear regression, the serial correlation of errors in the case of cross-sectional data being irrelevant, and the dependent variable LEV is nuanced by the total debt ratio (TDR) calculated as ratio between total debt and total assets
According to the variable correlation matrix (Table 5) no factor should be eliminated, but by estimating the equation we find that some variables are not statistically significant having pvalue >0.05, value initially stipulated by Fisher and accepted by the scientific community
Summary
In an attempt to explain how firms finance their assets and the factors that influence these financing decisions, a number of theoretical and practical models of capital structure have been proposed over time, with the fiscal variable being introduced in models by Graham (2003). In this context, the research starts from the question: “Is there a direct link between the level of taxes and economic growth?” This question lies in the fact that more important than the payment of taxes (even if it affects the company's treasury) is how to use the taxes collected to stimulate economic growth. The structure of capital was and remains one of the most controversial issues of finance to which researchers have given special importance following the publication of the work of Modigliani and Miller (1958)
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