Taxes and Corporate Capital Structure in an Incomplete Market
将Miller 1977年的公司资本结构分析扩展到不完全资本市场，发现市场不完全性和税收套利限制导致投资者偏好不一致，且低成本公司倾向于发行更多债务。
This paper extends Merton Miller's 1977 analysis of corporate capital structure decisions to the incomplete capital markets case. As in Miller's model, aggregate demand for corporate leverage is curtailed as interest rates on taxable bonds rise. Unlike Miller's model, however, capital structure is not a matter of indifference to all equilibrium shareholders. Market incompleteness and tax arbitrage restrictions combine to prevent marginal rates of substitution from being equalized for all investors and hence their preferences are not unanimous. In addition, costs associated with debt induce a tendency for lower cost firms to issue a larger proportion of total corporate debt.