Leverage, uncertainty and investment decisions

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 190
Issue: C

Authors (2)

Kenc, Turalay (not in RePEc) Driver, Ciaran (School of Oriental)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:190:y:2020:i:c:s0165176520300628
Journal Field
General
Author Count
2
Added to Database
2026-01-25