• Media type: E-Book
  • Title: Accelerated Depreciation, Default Risk and Investment Decisions
  • Contributor: Panteghini, Paolo M. [Author]; Vergalli, Sergio [Other]
  • imprint: [S.l.]: SSRN, [2016]
  • Published in: FEEM Working Paper ; No. 014.2016
  • Extent: 1 Online-Ressource (24 p)
  • Language: English
  • DOI: 10.2139/ssrn.2743145
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 7, 2016 erstellt
  • Description: In this article we focus on a representative firm that can decide when to invest under default risk. On the one hand, this firm can benefit from generous tax depreciation allowances, on the other hand it faces a default risk. Our aim is to study the effects of tax depreciation allowances in a risky environment. As will be shown in our numerical analysis, generous tax depreciation allowances lead to a decrease in a firm's leverage and, in most cases, cause a reduction in default risk. This result has a strong policy implication, in that it shows that an investment stimulus pack is expected neither to increase the default risk nor to cause financial instability
  • Access State: Open Access