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by James S. Schallheim, Ph.D.
Fall 2000 Issue

What are the factors that favor leasing or debt financing? In a recent study published in the Journal of Finance, my colleagues and I demonstrate that certain factors favor leasing while other factors favor debt financing.1# But the most striking evidence provided in our study is that a better and more precise way of measuring the tax status of the firm provides results that are consistent with finance theory and practice.