An Empirical Analysis of the Effect on Associated Enterprises’ Internal Financing Decisions after Thin Capitalization Provisions Implementation in Taiwan

• Main Authors: Chen, Wei-Chen, 陳威辰
• Other Authors: 楊葉承
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/74095054404083631359

碩士 === 東吳大學 === 會計學系 === 103 === 　　This Paper concentrates at the effect on effective tax rate of enterprises and related financing decisions after thin capitalization provisions are implemented in Taiwan. The proportion of related party debt to equity regulated by “Article 43-2 of the Income Tax Act” and “Regulations Governing Assessment of Interest Expenditure on the Debts Owed by a Profit-seeking Enterprise to a Related Party in Accordance with the Condition that the Related Payments Shall Not be Considered as Expenses or Losses” is used to perform a regression analysis and find no significant relation on effective tax rate either before or after thin capitalization provisions are implemented. Before implementation interest-bearing liabilities rates, external debt ratio, and emerging companies show significant positive correlation to the proportion of related party debt to equity. Considering the situation after the implementation of thin capitalization provisions, the proportion of related party debt to equity shows no significant influence due to the implementation. The effective tax rate of enterprises and interest-bearing liabilities rates shows no significant influence after the implementation either. The external debt ratio has consistent result with the empirical result of foreign papers that external debts shows an mutual growth and decline relationship with the proportion of related party debt to equity after thin capitalization provisions implementation.