Yi Wu
Economic Research Center, Kunming University of Science and Technology, 650093, Kunming, Yunnan, China
Cunzhi Tian
Economic Research Center, Kunming University of Science and Technology, 650093, Kunming, Yunnan, China
ABSTRACT
This study analyzes the influence of different tax rate on dividends over the companys maturity structure of liabilities. The theoretical model introduces the growth opportunity, based on the external financing analysis framework under asymmetric information. Through theoretical derivation and numerical calculations, this study gets some meaningful conclusions. The long-term debt increases with the increasing of different tax rate on dividends. The short-term debt decreases with the increasing of different tax rate on dividends and growth opportunity. In other words, the debt maturity structure will be influenced by growth opportunity and different tax rate on dividends. Furthermore, the different tax rate on dividends is beneficial to the entrepreneur engaged in long-term investment.
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How to cite this article
Yi Wu and Cunzhi Tian, 2013. Different Dividends Tax, Growth Prospects and Maturity Structure of Liabilities. Journal of Applied Sciences, 13: 3203-3208.
DOI: 10.3923/jas.2013.3203.3208
URL: https://scialert.net/abstract/?doi=jas.2013.3203.3208
DOI: 10.3923/jas.2013.3203.3208
URL: https://scialert.net/abstract/?doi=jas.2013.3203.3208
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