Arbeitspapier
Optimal investment and financial strategies under tax rate uncertainty
In this paper we apply a real-option model to study the effects of tax rate uncertainty on a firm's decisions. In doing so, we depart from the relevant literature, which focuses on fully equity-financed investment projects. By letting a representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially mitigate the effect of tax rate uncertainty on investment timing.
- Language
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Englisch
- Bibliographic citation
-
Series: Nota di Lavoro ; No. 2010,68
- Classification
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Wirtschaft
- Subject
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Capital Levy
Corporate Taxation
Default Risk
Real Options
- Event
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Geistige Schöpfung
- (who)
-
Fedele, Alessandro
Panteghini, Paolo M.
Vergalli, Sergio
- Event
-
Veröffentlichung
- (who)
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Fondazione Eni Enrico Mattei (FEEM)
- (where)
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Milano
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fedele, Alessandro
- Panteghini, Paolo M.
- Vergalli, Sergio
- Fondazione Eni Enrico Mattei (FEEM)
Time of origin
- 2010
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