Earnings Before Interest and Tax (EBIT) and Capital Remuneration

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AuteurAGOSSADOU, STANISLAS T MEDARD D C
Date d'ajout2026-06-02T16:06:57Z
Date de disponibilite2026-06-02T16:06:57Z
Date de publication2025
ResumeBackground: Earnings before interest and tax (EBIT) is the earnings generated by the corporate investment, irrespective of the source of the corporate financing. EBIT is generally intended not only to remunerate debt capital via interest and equity capital via dividend, but also to cover the corporate income tax (CIT) charge. From this point on, the main research question that arises is this: Isn't CIT the remuneration of a capital? Objective: This research's overall objective is to estimate the capital whose remuneration is CIT. Method: The Generalized Least Squares (GLS) method on random‑effect panel data, collected on a sample of one hundred and three firms in the building and public works (BPW) sector in France, over the period 2017 to 2021, was used. It was assumed that there is no free cost or revenue and that the public or taxable capital (TAXITY) used by the firm, subject to CIT, is a straight line debt and equity combination. Results: We find a strong positive correlation between CIT and TAXITY and significantly estimate the corporate capital tax rate (CCTR) at 1.61%. Conclusion: The main determinant of CIT has been estimated, namely the positive effect of public capital.
DOI10.57198/2583-4932.1344
Autre identifiantBECDB-17519
URIhttps://dspace.uac.bj/handle/123456789/14511
Languefr
Fait partie deManagement Dynamics
SujetFinancial integration
SujetCorporate capital tax
SujetCost of capital
SujetPublic capital
SujetTax capital
TitreEarnings Before Interest and Tax (EBIT) and Capital Remuneration
TypeArticle

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