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Several investment-repatriation strategies are added to the standard model of a parent and its affiliate in which the … analytically how the availability of these strategies can effect real investment in the low-tax subsidiary and throughout the … alternative strategies. The evidence is generally consistent with the theory, particularly the 'triangular' strategies using …
Persistent link: https://www.econbiz.de/10011576600
Persistent link: https://www.econbiz.de/10001447922
"We develop a model where dividend payout, investment and financing decisions are made by managers who attempt to … mitigates the degree of underinvestment. Changes in corporate borrowing absorb fluctuations in earnings and investment …
Persistent link: https://www.econbiz.de/10003994896
's decision to either carry out an investment in corporate shares or to invest funds alternatively on the capital market. Three … solutions for the investment problem for different categories of tax regimes, even under certainty, cannot be derived. Applying …, we identify the dividend rate and the point in time of selling the shares as important value drivers. -- capital gains …
Persistent link: https://www.econbiz.de/10003276589
investment.Anticipated dividend tax changes, on the other hand, allow firms to engage in inter-temporal tax arbitrage so as to …, can significantly increase (decrease) aggregate investment for periods after the tax change.The analysis of dividend …"We analyze the effects of changes in dividend tax policy using a life-cycle model of the firm, in which new firms …
Persistent link: https://www.econbiz.de/10003680559
. Therefore, in an inflationary period generous tax depreciation provisions do not promote private investment as designed, but …
Persistent link: https://www.econbiz.de/10011514138
This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …
Persistent link: https://www.econbiz.de/10011507879
In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … investment research. For example, not including factor prices in investment models may seriously affect the model outco! mes … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ. …
Persistent link: https://www.econbiz.de/10011349194
In this paper we offer an analysis of the effects of uncertainty about future tax policy on irreversible investment …. The main message of the paper is that investment is not much affected by the degreee of tax policy uncertainty. This is … that reducing tax policy uncertainty is probably no magic bullet to increase private investment spending …
Persistent link: https://www.econbiz.de/10009781588
We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …
Persistent link: https://www.econbiz.de/10011306337