The Tax Effect on Capital Structure: An empirical investigation of tax shield utilization following the Tax Cuts and Jobs Act
Mixed support regarding firm capital structure reaction to the Tax Cut and Jobs Act is found. In the main difference-in-differences estimation, support is found for the predictions of trade-off theory after the inclusion of control variables aiming to capture shareholder distribution and capital structure optimization. These results do not prove robust to a more granular matching procedure. A uniq
