Fahr, René; Janssen, Elmar A.; Sureth, Caren - 2014
It is well-known that taxes affect risky investment decisions. Analytical studies indicate that tax rate increases can … foster (accelerate) investment if there is flexibility, in particular when an exit option is available. We design an … underlying model, we find accelerated investment, which is often considered as an increased willingness to invest, on tax rate …
