Arbeitspapier
Marginal versus average beta of equity under corporate taxation
Even for fully equity-financed firms there may be substantial effects of taxation on the after-tax cost of capital. Among the few studies of these effects, even fewer identify all effects correctly. When marginal investment is taxed together with inframarginal, marginal beta differs from average if there are investment-related deductions like depreciation. To calculate asset betas, one should not only 'unlever observed equity betas, but 'untax' and 'unaverage' them. Risky tax claims are valued as call options, with closed-form solutions for the exercise probability. Results have practical relevance for multinationals operating under different tax systems.
- Sprache
-
Englisch
- Erschienen in
-
Series: Memorandum ; No. 2009,12
- Klassifikation
-
Wirtschaft
Multinational Firms; International Business
Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Business Taxes and Subsidies including sales and value-added (VAT)
- Thema
-
Cost of capital
WACC
loss offset
tax shields
options
Kapitalkosten
Multinationales Unternehmen
Betriebliche Investitionspolitik
Unternehmensbesteuerung
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lund, Diderik
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Oslo, Department of Economics
- (wo)
-
Oslo
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Lund, Diderik
- University of Oslo, Department of Economics
Entstanden
- 2009
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