Optimal Investment and Financial Strategies under Tax Rate Uncertainty

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dc.creatorFedele, Alessandro
dc.creatorPanteghini, Paolo M.
dc.creatorVergalli, Sergio
dc.date2017-04-01T19:31:32Z
dc.date.accessioned2026-07-09T05:14:50Z
dc.descriptionIn this paper we apply a real-option model to study the effects of tax rate uncertainty on a firm's decisions. In doing so, we depart from the relevant literature, which focuses on fully equity-financed investment projects. By letting a representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially mitigate the effect of tax rate uncertainty on investment timing.
dc.identifierdoi:10.22004/ag.econ.91001
dc.identifierhttps://ageconsearch.umn.edu/record/91001/files/NDL2010-068.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/91001
dc.identifier.urihttp://hdl.handle.net/123456789/561038
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/91001
dc.titleOptimal Investment and Financial Strategies under Tax Rate Uncertainty
dc.typeText

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