This paper aims at assessing the relationship between the possible existence of financial constraints and the decisions of Belgian private firms as regards their investments in both capital and R&D investments over the last decade. The main system GMM estimates from the error-correction...

In this contribution, we present a novel instrument to control for investment opportunities in studying the investment-cash-flow sensitivity. More in particular we introduce the book value of R&D. We argue this instrument has advantages over other theories of investment, especially when...

We estimate the effect of demand and price uncertainty on firms' investment decisions from a panel of manufacturing firms. Uncertainty measures are derived from firms' subjective qualitative expectations. They are close to their theoretical counterparts, the variances of future demand and price...

The International Financial Reporting Standards (IFRS) require a company to account forcurrent and future tax consequences, due to transactions and other events recognised inprofit or loss (IAS 12). Reported tax expense (tax income) seems to be relevant for bothcompany tax management (Bolton,...

Business groups in emerging markets perform better than unaffiliatedfirms. One explanation is that business groups substitute some functions ofmissing institutions, for example, enforcing contracts. We investigate thisby setting up a model where firms within the business group are connectedto...

In der Literatur werden zahlreiche Versuche unternommen, das Investitionsverhalten von Unternehmen durch die Anwendung ökonometrischer Modelle zu verstehen. Die Spezifikation dieser Modelle stützt sich in der jüngeren Vergangenheit auf zwei Theoriebereiche. Zum einen ist dies die neue...

In many decentralized corporations the allocation of financial funds especially for large projects depends on requests by subordinated divisions and subsidiaries. In this context there often exists a conflict of interests between the applicants and the headquarters...

Der Beitrag untersucht die Vorteilhaftigkeit von Finanzierungsalternativen für Investitionenin Personenunternehmen nach der Unternehmensteuerreform 2008. AlsFinanzierungsalternativen werden dabei Selbstfinanzierung, Beteiligungsfinanzierung,Gesellschafterfremdfinanzierung und Fremdfinanzierung...

Der vorliegende Beitrag untersucht den Einfluss der Besteuerung auf die Bereitschaftvon Investoren, riskante und irreversible Investitionen durchzuführen. AlsErweiterung der vorliegenden Literatur wird ein einfaches Ertragsteuersystem inein realoptionsbasiertes Modell irreversibler...

This paper proposes the introduction of a consumption-based corporate income tax in the European Union. Our proposal would guarantee neutrality regarding investment decisions and at the same time increase cost-efficiency. The proposal is based on the S-base cash flow tax, where transactions...