Maoz, Yishay (2007): Tax, Stimuli of Investment and Firm Value.
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Pennings (2000) has shown that the government can speed-up investment by subsidizing the potential investing firm's entry cost while taxing the future proceeds from the investment, so as to render the net expected value of its subsidy program zero. This note argues that while speeding-up the investment timing, this subsidy-tax program also lowers the value of the firm and therefore will be rejected by it.
|Item Type:||MPRA Paper|
|Institution:||Economics Department, Haifa University|
|Original Title:||Tax, Stimuli of Investment and Firm Value|
|Keywords:||Investment; Uncertainty; Option Value|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty|
|Depositing User:||Yishay Maoz|
|Date Deposited:||05. Nov 2007|
|Last Modified:||19. Feb 2013 02:08|