Leverage, uncertainty and investment decisions

被引：5
|
作者：
Kenc, Turalay
Driver, Ciaran
机构：
[1] TOBB ETU, Cankaya, Turkey
[2] SOAS Univ London, London, England
来源：
ECONOMICS LETTERS | 2020年 / 190卷
关键词：
Irreversible investment; Tax incentives; Uncertainty; Leverage;
D O I：
10.1016/j.econlet.2020.109052
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We explore the role of taxes on stimulating investment decisions for levered firms under cash flows and investment costs uncertainty using the adjusted present value-based real options approach developed by Myers and Read (2019). We extend their work to consider combined tax credits and uncertain investment costs. We then run a numerical analysis to quantify the impact of uncertainty, corporate tax and investment tax credit in stimulating investments. (c) 2020 Published by Elsevier B.V.
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页数：4
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