Kenc, Turalay and Driver, Ciaran (2020) 'Leverage, uncertainty and investment decisions.' Economics Letters, 190 (109052).
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Abstract
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.
| Item Type: | Journal Article |
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| SOAS Departments & Centres: | Departments and Subunits > School of Finance & Management |
| ISSN: | 01651765 |
| Copyright Statement: | © 2020 Published by Elsevier B.V. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| DOI (Digital Object Identifier): | https://doi.org/10.1016/j.econlet.2020.109052 |
| Date Deposited: | 19 Mar 2020 13:46 |
| URI: | https://eprints.soas.ac.uk/id/eprint/32507 |
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