SOAS Research Online

A Free Database of the Latest Research by SOAS Academics and PhD Students

[skip to content]

Kenc, Turalay and Driver, Ciaran (2020) 'Leverage, uncertainty and investment decisions.' Economics Letters, 190 (109052).

[img] Text - Accepted Version
Restricted to Repository staff only until 6 September 2021.
Available under License Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 (CC BY-NC-ND 4.0).

Request a copy

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
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

Altmetric Data

Statistics

Download activity - last 12 months
Downloads since deposit
1Download
66Hits
Accesses by country - last 12 months
Accesses by referrer - last 12 months

Repository staff only

Edit Item Edit Item