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Using an agency model of firm behavior, the paper analyzes whether the cost of investment should be tax exempt. The findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is tax deductible, as commonly advocated. The extent to...
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evaluations by the features of tax incentives. We document that on average R&D tax incentives stimulate R&D expenditures across … incentives. Our samples evidence that the estimations linked to incremental bases and related to targeted rules towards SMEs … effectiveness of R&D tax incentives, allowing governments to monitor the indirect support needed to stimulate private R …
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assets in 2014 and 2015 in China as natural experiments and empirically evaluate the role of tax incentives in mitigate … energy use. This paper reveals the role of tax incentives in global climate governance by reducing carbon emissions …
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aversion, resulting in lower return investment choices. Therefore, we assess whether incentives associated with stock option … greater risk aversion rather than excessive risk-taking. Overall, our results imply that risk-taking incentives (i.e., vega …
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