The impact of tax incentives on the financing of Moroccan SMEs

Abstract

The choices made by the company in the method of financing its needs are based on a certain number of variables among which taxation plays an essential role, both by the cost generated by certain financing decisions and by the impact that the financing choices can have on the taxable income of the company. In this context, several researchers have raised the question of the impact of tax incentives on the investment financing decision, given that the tax aspect has a catalytic effect which can encourage or discourage the use of a particular means of financing. Thus, allowing it to constitute a tax saving. Certainly, several theories have addressed the relationship between tax incentives and financial decisions, but the empirical approach remains essential to confirm or refute the effect of these two variables. In this article, we adopted a confirmatory factor analysis using structural equations on a sample made up of Moroccan SMEs.