Fedele, Alessandro
[Verfasser:in]
;
Panteghini, Paolo M.
[Sonstige Person, Familie und Körperschaft];
Vergalli, Sergio
[Sonstige Person, Familie und Körperschaft]
Optimal Investment and Financial Strategies Under Tax Rate Uncertainty
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 21, 2010 erstellt
Beschreibung:
In this paper we apply a real-option model to study the effects of tax rate uncertainty on a firm's decisions. In doing so, we depart from the relevant literature, which focuses on fully equity-financed investment projects. By letting a representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially mitigate the effect of tax rate uncertainty on investment timing